Maintaining your Credit Scores
Many people do not understand the factors that establish a good credit rating or damage your credit score. Here are some factors to pay attention to when monitoring your credit:
Credit cards: Avoid applying for in-store credit cards that offer discounts on purchases. They are often responsible for lowering your credit score. Well known credit cards like Mastercard, Visa and AMEX are looked at as positive credit vehicles.
Keep credit inquiries to a minimum: It is best to use a mortgage broker when shopping for a new mortgage as your credit profile will be minimally pulled. If you are shopping for a new car, it is best to have creditors pull reports within a short timeframe as repeatedly pulling your credit score can lower your rating. A lender may be more likely to count all of your inquiries as one if they fall within a week to 2 week period.
Set up automatic payments on your credit cards: People who make automatic on-time payments can score 100 points more than those that do not
Keep your good lines of credit open: if you close a line of credit that is not in use it can actually negatively affect your credit -score as you no longer have as much credit available. The best idea is to keep your credit lines open and manage them smartly as needed. Also closing a credit card that displays a long and stable payment history is not a good idea as this helps a lender determine your repayment patterns.
Credit cards: Avoid applying for in-store credit cards that offer discounts on purchases. They are often responsible for lowering your credit score. Well known credit cards like Mastercard, Visa and AMEX are looked at as positive credit vehicles.
Keep credit inquiries to a minimum: It is best to use a mortgage broker when shopping for a new mortgage as your credit profile will be minimally pulled. If you are shopping for a new car, it is best to have creditors pull reports within a short timeframe as repeatedly pulling your credit score can lower your rating. A lender may be more likely to count all of your inquiries as one if they fall within a week to 2 week period.
Set up automatic payments on your credit cards: People who make automatic on-time payments can score 100 points more than those that do not
Keep your good lines of credit open: if you close a line of credit that is not in use it can actually negatively affect your credit -score as you no longer have as much credit available. The best idea is to keep your credit lines open and manage them smartly as needed. Also closing a credit card that displays a long and stable payment history is not a good idea as this helps a lender determine your repayment patterns.
