There are many things that affect your credit score. The length of your credit history, the amount of available credit versus the amount you owe to your creditors, how many times you have applied for credit (i.e. authorized a creditor to check your credit history), and what type of credit you owe (i.e. mortgage, installment loans, unsecured debt). These areas can have a positive or negative impact on your credit score even before factoring issues of credit management – meaning whether or not you pay your bills on time, if you have filed for bankruptcy or have had automobile repossessions or judgments.
A maximum limit is allotted to every card and customers are expected to manage their expenses within the limit. Crossing this limit is another mistake that can bring huge troubles for you. Learn to contain yourself and manage your expenses. Try to keep a track of the expenses and the difference you have get credit to reach the maximum limit.
You want to pay off the credit card debt with the highest rate of interest first. Do your best to get extra money out of your budget to pay it. An extra $100 or so a month can help you to pay it off quicker. You may have to cut out extras such as eating out but it will be well worth it.
Go nationwide. Small community banks and credit unions may not report to all 3 credit bureaus. If you already have credit, do a little research on your creditors to see if they report to the bureaus. If not, then your credit line with them is not helping to build your Consolidated credit solutions score.
You can use your secured card to repair your credit score. The secret is to keep your credit card spending low, and keep making high payments. A low balance on your card looks good on your credit. If you do not use your card though, then that does nothing for you. You should budget a certain amount that you will spend on your card each month. Then pay off the balance as quick as you can. If you can’t pay it off, then keep your balance low and make your payments when they are due.
Credit repair scams are a dime a dozen, so understanding what is legit and what isn’t is key in finding someone to help you with your problems. For example, if a company contacts you but doesn’t tell you about your Fair Credit Reporting Act rights, then they aren’t a trustworthy business.
It is always nice and beneficial to have a credit card or two. But always remember, to use them properly and wisely for it will add up to your burdens and debts.