How To Know Your Credit
As an American, you have a right to know what your credit looks like and what its history shows. Because credit is such an integral part of our financial and personal lives in today's society, it has been made law that you be allowed to see your credit history and standing for free every year. All three credit bureaus must give you a copy on request.
Most Americans already know this, but what they don't know are the little things that can be affecting their credit that they might not even be aware of. Some of those things will surprise you when you find out what they are.
Your address on a credit application is a big deal. Did you know that PO boxes and even many box addresses like the UPS Store can negatively affect your chances of getting approved? It's true. Credit bureaus often see these as fake and so give them a lower score, thus giving you less chance of getting credit approval.
Adding positive histories to your credit file is as important as removing the negative ones. Sure, paying off old debts or removing false information is important, but so is putting good information by having credit accounts that are in good standing. Make sure to keep your new accounts current and build on them to make for good credit overall.
Did you know that self employment hurts your credit? Creditors usually see this as a negative because it's not a guaranteed income source like a regular job. Becoming incorporated and working for your corporation is the solution here, if you are self-employed. It gives many other benefits as well.
If your credit rating is good, it will not be for long if you are over your head in debt. A ratio is used to decide this when companies consider you for credit. That ratio is your debt to income ratio. If your debt is more than your income or if your expected monthly payments are maxing out your monthly income, your ratio is too high and you're less likely to get credit extended.
Carrying a balance on your credit cards is not a bad thing. In fact, paying off your credit cards every month without keeping a floating balance actually hurts your credit. Having credit and using it are two separate things and creditors want to know that they're going to get some income from interest payments, even if it's modest. So carrying a small balance on your credit cards will give you a higher credit standing or increasing your credit rating with those who might extend you credit.
One late payment can ruin all the hard work you've put into building your credit up or credit rating. So make sure all your payments on your credit are on time. Even short payments, if you find yourself without enough to quite make the whole thing, are better than no payment at all. So send in a payment regardless of how much it is so that it arrives on time, every time. Make up the different as quickly as you can.
These are the secrets to getting and keeping good credit and may be the reason your score doesn't seem to be improving.
Most Americans already know this, but what they don't know are the little things that can be affecting their credit that they might not even be aware of. Some of those things will surprise you when you find out what they are.
Your address on a credit application is a big deal. Did you know that PO boxes and even many box addresses like the UPS Store can negatively affect your chances of getting approved? It's true. Credit bureaus often see these as fake and so give them a lower score, thus giving you less chance of getting credit approval.
Adding positive histories to your credit file is as important as removing the negative ones. Sure, paying off old debts or removing false information is important, but so is putting good information by having credit accounts that are in good standing. Make sure to keep your new accounts current and build on them to make for good credit overall.
Did you know that self employment hurts your credit? Creditors usually see this as a negative because it's not a guaranteed income source like a regular job. Becoming incorporated and working for your corporation is the solution here, if you are self-employed. It gives many other benefits as well.
If your credit rating is good, it will not be for long if you are over your head in debt. A ratio is used to decide this when companies consider you for credit. That ratio is your debt to income ratio. If your debt is more than your income or if your expected monthly payments are maxing out your monthly income, your ratio is too high and you're less likely to get credit extended.
Carrying a balance on your credit cards is not a bad thing. In fact, paying off your credit cards every month without keeping a floating balance actually hurts your credit. Having credit and using it are two separate things and creditors want to know that they're going to get some income from interest payments, even if it's modest. So carrying a small balance on your credit cards will give you a higher credit standing or increasing your credit rating with those who might extend you credit.
One late payment can ruin all the hard work you've put into building your credit up or credit rating. So make sure all your payments on your credit are on time. Even short payments, if you find yourself without enough to quite make the whole thing, are better than no payment at all. So send in a payment regardless of how much it is so that it arrives on time, every time. Make up the different as quickly as you can.
These are the secrets to getting and keeping good credit and may be the reason your score doesn't seem to be improving.
About the Author:
Find out more as Darren Cason shares his experiences on landscaping and gardens at http://www.plant-care.com. Get cleared up on increasing credit rating.
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