Keeping your credit history clean and accurate is as important as having a good money management scheme and paying on time all your bills. Any mistake can be costly for you, and it may ruin your credit history. The lowest interest rate and the best deals are reserved for those with excellent credit reports. This article will give you some ways to keep it clean.
Monitoring your credit report continuously
You need to follow carefully your credit report. A good practice if to check it at least one time per month, to be sure that all the reported information is accurate and nobody is using your credit or steal your identity. You can get a free copy of your credit report mail to you once a year for each credit report agency. Additionally, there are hundreds of free legit online credit report companies which you can access periodically and be sure your profile and report are updated and accurate. Checking online your credit report is the easiest way to keep it clean.
Pay on time your bills
Paying on time all your bills and always keeping your account in good standing condition, is the best way to show your responsibility and money management skills. If you are no able to make a monthly payment, you need to contact the creditor as soon as possible and explain to them the situation. Most lender will agree to give you some grace period for you to bring your account current without reporting it as default. Writing an explanation letter even after missing the due date can help you in preventing the lender from reporting your fault. Paying on time is the most important factor to keep your credit report clean
Keep your balance below the 50% of your limit
Spread your balance among your credit cards and keep all of them below the 50% of their credit limit. Keeping a lower balance is much better than paying more than the minimum. Avoid using just one card for all your financial since the amount of your used credit has a negative impact if it is over the 70% of it on any credit card. When you used more than the 70% of your credit, lenders immediately consider that you tend to overindulge yourself and it increases your credit risk. You have to be smart and pay all your credit cards but pay more in those who are closer to their credit limit.