| Important Steps to Maintain Great Credit | | | | report, these numerous hits can also negatively effect |
| Credit scores can be confusing. As a consumer, it is | | | | your credit score. Reporting agencies see that as an |
| almost impossible to know everything that goes into | | | | individual is requesting too much credit for their |
| your score. Fortunately, we can use some standard | | | | comfort. And directly linked to this action is when the |
| rules that all should know. Based on this information an | | | | excess credit reports are found with no new debt |
| individual can then focus on keeping a high credit score. | | | | opened, it can be an indication of your lack of credit |
| It is important to understand that you should pay bills on | | | | worthiness, thus the decrease in points. |
| time. It seems like an obvious statement, but many | | | | An indirect link to your credit score can be if you are a |
| don't seem to understand how paying bills can | | | | co-signer on someone else's loan. Many people don't |
| negatively effect your credit score. And the length of | | | | realize this can largely effect your credit, especially if |
| your delinquency can also contribute. For instance, it is | | | | the other person does not make their payments. In the |
| a fair bet that if you have one bill that is 30 days late | | | | eyes of a credit report, you are considered a |
| and your neighbor, who virtually has the same score | | | | borrower, even when you are, as many claim, "only a |
| as you, has a bill that is 90 days late, or more, your | | | | co-signer." Lenders, in granting loans, don't look at things |
| neighbor is destined to get a larger drop in their | | | | that way. They look at what can happen if the other |
| number. | | | | person stops paying. You are ultimately the go-to |
| When companies determine your creditworthiness, | | | | person on repaying the loan. Obviously, the other |
| another aspect that they concentrate on is called the | | | | party's non-payment will effect you more as a |
| debt to income ratio. Ultimately your salary is | | | | co-signer than if they were to continue paying. That is |
| compared with what your monthly costs are. The | | | | why it is most important to only agree to be a |
| larger the ratio, the better the chances of your credit | | | | co-signer if you have the means to pay the loan if the |
| score going down. | | | | original borrower does not pay. |
| Along these same lines, if you have a significant | | | | Since the credit reporting agencies have kept formulas |
| amount of outstanding debt, that can also effect your | | | | and ratios under tight wraps when it comes to how |
| credit score. If you have used any credit you have | | | | credit scores are calculated, it is difficult to give exact |
| been granted to its maximum, often referred to as | | | | scenarios that would negatively affect it. But ultimately, |
| "maxed out", your credit rating can be negatively | | | | it comes back to the basic statement made at the |
| effected. | | | | beginning of this article, you should always pay your |
| If you consistently have companies running your credit | | | | bills on time. |