If you’ve started your ScoreSense membership and received your free credit reports, you may be wondering how ScoreSense can help you build—or rebuild—your credit. Some unscrupulous companies promise instant relief from things like bankruptcies, because unlike ScoreSense, scams play on the consumer’s desire for a quick fix. While we wish that were possible, ScoreSense understands that the road to debt recovery can be tedious. However, we offer solid help designed to help anyone get back on track. Here are some steps to help you do just that.
- First, understand your credit score. Any score lower than 650 can be a big problem when applying for something like a mortgage, so you’ll want to know your score, and start building it up, several months in advance of applying for a big loan. While you can get only one free copy of your credit report from each of the three credit bureaus each year, ScoreSense monitors your credit from all three, keeping you abreast of changes as they occur.
- Be sure to pay bills on time. Late payments significantly damage credit scores, so building a history of paying on time can really boost your scores. Automatic payments are a great way to ensure payments are made on time.
- Pay off credit cards first. Paying down credit card balances is extremely beneficial to your score and will have a larger impact than, say, paying extra on your mortgage.
- Maintain low balances. You want available credit on credit cards to be much higher than your balances, so aim at keeping your spending to 10% of your limit. The lower this ratio is, the better it looks to lenders.
- Don’t close out old accounts. Having a longer history is beneficial. Further, a card with a zero balance helps lower your ratio of used credit, so avoid closing accounts just because you’ve paid them off.
ScoreSense, also known as OTL ScoreSense, offers members the opportunity to take charge of their finances, protecting their credit and their families. With a ScoreSense membership, you’ll be alerted to threats to your credit score or your identity, before they cause major problems. Once you’re a member, all you have to do is go online to ScoreSense, login, and check for new activity; it’s that easy. If you’d like more information on credit management with ScoreSense, visit us at http://www.scoresense.com.