Tips to Help Restore Credit

Some people only think about their credit when they're about to apply for a mortgage, auto loan or other types of loans. However, good credit management involves knowing the contents of your credit report and maintaining a good credit rating. Bad credit limits your ability to acquire financing, and if you do secure a loan, expect your lender to charge a higher rate. By restoring your credit and keeping a high score, lenders will view you as a prime applicant and offer you the best rates.

Payment Tips

A good payment history is a key element in restoring your credit score and keeping a good rating. According to MyFico.com, establishing a good payment record impacts your rating by 35 percent. Creditors send account statements several weeks before the due date. Opening statements promptly and recording due dates on a calender or sheet of paper helps you pay on time and avoid late fees and credit problems. For your convenience, several creditors and lenders offer online payment systems, wherein you can forward a payment on your due date.

Debt Tips

Credit cards can hurt your personal rating, and restoring or improving your personal score can be as simple as getting rid of your outstanding balances and controlling your spending. Pulling out plastic to purchase unnecessary items can trigger high balances and high minimum payments. Learning how to live on cash and getting into a routine of paying off new credit card charges each month helps control your debt.

Credit Report

It's risky to go several years without reviewing your personal credit report. Someone can get their hands on your personal information and apply for credit using your name. Annual Credit Report makes it easy for every consumer to check their credit report and detect signs of fraud early. This agency provides each consumer with one free report annually.

Credit Inquiries

Agreeing to submit an application for in-store credit or mailing in a preapproved credit card offer may appear harmless. But each credit application submitted results in a credit check, and credit checks or inquiries take points off your credit score. An excessive number of credit inquiries can hinder your efforts to restore your credit rating.