Get Smart About Your Credit
According to nationaldaycalendar.com, the third Thursday in October is "Get Smart About Your Credit Day." We agree that getting serious about your credit and learning ways to improve it deserve a spotlight!
Here are a few things to watch for:
Amount of debt you carry – Paying off the amount you charge to your credit cards each month helps to improve this amount. Showing that you are reducing debt each month gradually increases your score over time.
Age of credit history – The older your credit history (and the longer it is in good standing) shows a trend toward reliable financial standing.
Reports to collections agencies – Any inaccurate reporting to a credit agency needs to be reported immediately. The sooner you resolve an inaccuracy, the quicker your credit report can be corrected. Obtain a letter from the collection agency once you have been able to confirm the error and submit it to all the credit reporting agencies.
Late payments – Any time make a late payment, especially on a credit card or loan, this will be reflected on your credit report. Pay early, pay on time. If you use your online banking system to make payments, remember to review your bank’s turn-around time for payments. Take their delays into account and schedule accordingly to avoid any late payments.
The number of hard inquiries for credit – If you are considering a loan for a car or house, each inquiry will be registered on your credit report. When your credit is in good standing, it doesn’t have a big impact.
The number of accounts – Opening and closing accounts can have an impact on your credit score. Depending on the number of accounts, the impact on your score could be huge.
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