| Millions of consumers throughout the U.S. contend with | | | | long term finances and for your credit score. |
| the effects of having poor credit. Some are turned | | | | - Try to keep low balances on your credit cards - |
| down for credit cards or vehicle loans, others find out | | | | Outstanding debt accounts for 30 percent of your |
| their applications for mortgage refinancing have been | | | | credit score. The closer you are to reaching the limit on |
| rejected. If you are dealing with the limitations that can | | | | your credit cards, the less stable your finances appear. |
| result from having poor credit, you may already know | | | | Keeping credit card balances below 30 percent of the |
| your credit reports are in need of repair. Today, | | | | limit will make your credit utilization ratio look better. |
| understanding how to fix your credit rating doesn't | | | | - Avoid shifting your debt between credit cards - |
| have to be frustrating or stressful, thanks the wealth | | | | Transferring debts to a lower interest rate credit card |
| of financial resources available to consumers. | | | | is a good strategy when trying to pay down debt, but |
| The first step in improving your credit is to know what | | | | a history of transferring balances between cards |
| is listed on your credit reports. You can do this by | | | | makes it look like you are robbing Peter to pay Paul |
| ordering free copies of your credit reports from or by | | | | instead of making your monthly payments. |
| calling 1-877-322-8228. This service is provided by | | | | - Carefully study credit offers before accepting them - |
| Equifax, Experian, and TransUnion, the country's three | | | | Some loans, including department store cards, are |
| largest consumer credit reporting agencies that | | | | loaded with fine print and other strings attached that |
| maintain and distribute your credit report. The Fair | | | | can end up causing big problems down the road. For |
| Credit Reporting Act entitles you to receive, by | | | | example, some no payment, no interest financing |
| request, a free copy of your credit report from each | | | | programs offered by retailers include interest rates |
| of the credit bureaus once every 12 months. | | | | that can skyrocket if you are late on a single payment |
| Tips to Increase Your Credit | | | | and clauses where you may still be responsible for |
| Credit scores are an important tool used by lenders to | | | | making payments on interest accrued during the "no |
| determine the probability a borrower will repay his or | | | | interest" period. |
| her loan. Fortunately , this rating is not set in stone. | | | | - Use your credit cards responsibly - Keeping balances |
| there are many things you may be able to do to | | | | below 30 percent is a start, but you should also be |
| increase your credit score. | | | | careful to keep the number of cards you have in |
| - Pay your bills on time - Payment history makes up | | | | check, make all payments on time, occasionally use |
| 35 percent of your credit score. A period of not | | | | older cards, etc. For the most part, best practices for |
| making timely payments will quickly drop your score | | | | all credit accounts apply to credit cards as well but |
| but since the impact of a late payment diminishes over | | | | given how frequently people let their credit card |
| time, concentrating on making all payments on time | | | | spending get out of control, responsibly using credit |
| going forward will get your score moving in the right | | | | cards deserves special attention. |
| direction. | | | | - Look into credit repair services - For people who |
| - Contact your creditors if you are having a hard time | | | | need additional assistance addressing their bad credit, |
| making payments - If you foresee that you will be | | | | another excellent resource for consumers are |
| unable to keep up to date on loan or credit card | | | | professional credit repair services. Professionals can |
| payments, you may be able to make arrangements | | | | provide their valuable expertise on important matters |
| with your creditors such as extending the loan period | | | | like legally disputing the questionable negative listings on |
| that will help you get back on top of things. You could | | | | your credit report and specific steps you may be able |
| end up paying more, but if it keeps you from getting | | | | to take to make the most of your credit. |
| further and further behind, it will be worth it for your | | | | |