ScoreSense cares about empowering people to take charge of their credit and their lives. If you’re protected with ScoreSense, scam artists and ID theft pose less of a threat. However, building credit is still essential, especially before you have to make important life decisions. Here, ScoreSense offers some tips on building credit, from some of the top financial experts in the country.
- Build credit history. You might have heard that it’s best to pay for everything with cash, and while you don’t want to over-charge, it’s good to have a credit history. By opening a credit card account, and managing it wisely, you’ll create a history that will help lenders assess your creditworthiness.
- Vary your lines of credit. It’s a good idea to have a mix of credit types—major credit cards, store credit cards, and installment loans. This gives creditors concrete data to consider when they’re assessing your credit.
- Keep your balances low. Whenever possible, pay your balances in full every month. Use cash when you can, and avoid running up high credit card debt.
- Mind the gap! A large gap between available credit and the credit you’re using is beneficial. This is why you should always strive to avoid maxing out your credit cards. Also, keep credit cards active, even when you’ve paid the balances in full. A credit card with a $5000 limit and a $0 balance is very attractive to lenders.
- Pay your bills on time. Unpaid bills and late payments look bad in the eyes of lenders. While it’s best to make more than the minimum payment each month, it’s even more important to pay on time.
- Check your credit report. First, get reports from all three credit bureaus, which you’re entitled to receive for free once a year, and then continue monitoring your score. This is easy if you have a membership with ScoreSense. Login and you’ll be able to see the most up-to-date information about your credit report; ScoreSense will even send you alerts about suspicious activity on your accounts.
- Fix what’s wrong. If there is misinformation on your credit report, fix it. Dispute charges that aren’t yours with the credit bureaus, and focus on the things that have the most negative impact:
- Late payments, collections, and other negative things that aren’t yours.
- Credit limits that the lenders have reported as lower than they actually are.
- Any account listed as anything other than “current” or “paid as agreed.”
- Accounts listed as unpaid that were part of a bankruptcy.
- Old negative items—if they haven’t fallen off of your reports after seven years, make sure the bureaus delete them.
A ScoreSense membership empowers you to take control of your credit, and begin to build a better score. By alerting you of suspicious activity, offering an up-to-date look at your credit, and sharing expert tips on financial matters, OTL ScoreSense gives you the power, and shows you how to use it. If you’d like more information on credit management with ScoreSense, visit us at http://www.scoresense.com.