Credit Tips

      

 

Tips For Good Credit

 

Credit Explained

   
- Never pay a mortgage, credit card, auto loan, or student loan after the due date.  Utility bills are less important and are not typically reported unless they go to collections.
- If you are late for any reason, call the company, explain what happened, and ask (be firm if necessary) if they will remove any negative marking.  You can usually do this one time every few years (as long as you typically pay on time).
- Don't open an excessive amount of credit lines.  Even credit lines with zero balances can negatively affect your score.  Conversely, try not to close your older well established accounts as they will reflect positively on your score.
- Do not suddenly close several credit lines.  If you want to close some of your accounts, do it gradually over several months (but make sure to keep some accounts open including at least one of your older accounts).
- If you want to check your credit, donít use a third party to get it.  The major bureaus usually will only help you correct problems/mistakes on reports purchased directly from them.
- To establish credit, open up 1 or 2 credit cards and make sure you periodical use them. The amounts can be small and do not have to be carried over; it shows you still use the line.
- If you have difficulty with your credits cards or are overly tempted to use them, tell your credit card company to reduce your line of credit to an amount youíre comfortable with.  With a credit line max of $500, you can only get into so much trouble.
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Pay your rent on time every month and get written proof of it.  While a good rental history will not typically improve your credit, it can be used to prove to a lender that you are a good credit risk.  Often they will ask for proof of your rental history and/or a letter from your landlord, stating the period you rented for and that you paid on time.
- Check your credit at least six months in advance before applying for a mortgage loan. This gives you time to make corrections if necessary.
   
  If you loose your wallet or purse:
- Call the three national credit-reporting organizations immediately to place a fraud alert on your name and Social Security number.  The alert means any company that checks your credit will know your information was recently stolen and they must contact you by phone to authorize new credit.
   
  The three major credit bureaus are:
Equifax Experian, Inc. TransUnion
800-685-1111 888-397-3742 800-888-4213
www.equifax.com www.experian.com www.transunion.com

 

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