Your online source for credit cards, home and auto loans and more

Now that you can get a free credit report, it’s time to see if you can legally improve your score. You can pay someone to help you with this if you want, but much of it can be done by anyone with a little time and patience.

The first thing to do is always to check your credit report for inaccuracies. Get any inaccurate items corrected or removed.

Check to see if all positive items have been reported. If you’ve paid off a loan and it isn’t appearing on your report, ask the lender to add it to your report. Positive information is always a good thing to have listed.

If your credit limits are not listed for all accounts, ask for them to be added, so that it is clear how close you are to your current credit limits. If you are too close, you become less appealing for other credit.

Look for duplicated accounts and data. If your debt goes from one lender to another, it may appear twice, harming your credit score.

Even if you pay off an old account, don’t close it unless it has an annual fee or is otherwise costing you money to keep it open. Old and open credit accounts make your credit history longer, so it is clear that you have been a good risk for a long time. Read the rest of this entry »

In a way, it is possible for you to be too good with your credit. If you do so little with your credit that you completely lack a credit history, it can be hard to get a good rate when you really need credit, such as when purchasing a car or a house.

Even if you’ve had great credit in the past, you can undo it by not using your credit enough. The good as well as the bad fade away over time, and the companies that issue credit do prefer recent activity as an indicator to old activity.

It may go against the grain, but occasionally using your credit cards instead of cash, checks or debit cards can help. Just pay them off promptly so that you aren’t having to pay high interest rates.

Even if you’re trying to live a debt-free lifestyle, there are good reasons to keep a healthy credit card score. The simplest reason is that no one knows what their future holds. A loss of a job, a medical emergency not sufficiently covered by insurance, and suddenly you need credit desperately.

Lacking a credit score can do more than just cause you to pay higher interest should the time come that you do need credit. Insurance companies also are known to consider your credit score when setting your rates. They say there is a relationship between credit score and risky behavior, which justifies that check. Read the rest of this entry »