As I’m sure you’re very well aware, it is important to make sure that you are paying close attention to your credit score at any given time. Having a credit score that is high will make it easier for you to not only get the money that you need but to take care of many other important things in life. For example, renting an apartment or even getting a job may have a lot to do with your credit score and this is becoming even more important, as the number of jobs that are available continues to thin.
What are some of the things that can be done to make sure that your credit report is as high as possible?
Perhaps one of the most important things that needs to be done and should never be overlooked is checking your credit report regularly. There are 3 credit reporting agencies that can affect your overall score, each of them giving you an individual score that may be slightly different from another. In some cases, only one of your credit reports is going to be pulled when it is checked by a lending institution or perhaps a potential employer. In other cases, as is often the case with large loans such as mortgages, all three of your credit reports are going to be pulled and the average is going to be taken. You have a right to look at your credit reports on an annual basis and you can request a free copy so that you can check for any problems that may be occurring which need to be addressed.
You also need to understand that there are some ways for you to raise your credit score which may be overlooked by many individuals. An example of this is having an open line of credit. It is important for you to make sure that you balance this out, however, because having too many open lines of credit will lower your score. You also need to consider the fact that if you do have open lines of credit, you must keep the available balance on those lines of credit at a relatively low level. It is generally considered a good practice to keep your balance on those open lines of credit at under 50%. Anything more may have a negative impact on your credit report.
You also need to consider the types of credit that you have open. For example, student loans and multiple credit cards may have a harmful effect on your credit score but a mortgage or other similar loan that is paid regularly will help to keep your credit score on the high side. Perhaps most important is, regardless of how many different lines of credit you have open, you need to make sure that you are paying all of them regularly. If you do happen to get behind on your bills and see that your credit score is dropping, begin paying them regularly and you will see it rise once again.