Time to show some love to your credit report! Here are five tips how:
- Pay down balances below 30 percent to give your score an instant boost.
- Be a transactor, not a revolver, for a better score. A transactor pays the bill in full each month; a revolver carries a balance from month-to-month.
- Use your longstanding credit cards every six months to prevent them from being shut down due to inactivity, which usually results in a loss of positive points on your credit score.
- Dispute $0 balance collections to get them removed from your credit report. Oftentimes, they are reporting with inaccurate information which is illegal. Also, if an account was sold to collections, the original creditor cannot show a balance owing, because they can no longer collect on the debt. Don’t ask for the balance to be corrected; use that inaccuracy as an opportunity to remove the derogatory account altogether. By law, a credit report must be 100 percent accurate.
- Get your home loan before buying a car. Don’t make the bad mistake of buying a car before a home!
Above all, do not charge more than you can afford to pay when the billing statement arrives. Spending beyond your means is no way to show your finances any love.
Love your credit and you will receive love back in the form of saving money on interest and insurance premiums. If your credit needs some help, pick up a copy of this guide here.