Bank finance articles and tips

Your credit score matters. It affects how easy it is for you to buy things like a house, a car, and even a cellular phone. Without a good credit score, many things cost more, and some employers even hesitate to hire people with scores that are too low. Obviously, improving your credit rating is a good idea. Here are some simple but important ideas for getting your finances on the right track.

Start paying off your debts. That's a pretty obvious goal, but here's why it matters: Your score is affected by the percentage of your total available credit that you're actually using. The higher your debts, the more you're using of your total, and that's not good for your credit. Some experts recommend that you use no more than thirty percent of your available credit -- even less is better. Many people have to choose between multiple debts when they're paying things off, and if you're in that situation, you might want to work first on the account that's closest to its credit limit. Lowering the percentage of available credit that you're using on each individual account also helps raise your credit score.

Keep your old credit card accounts open. The average age of your accounts is another important factor used in calculating your score -- so even though you sometimes hear that it's good for your credit if you close old accounts, it isn't. Instead, pay off the debt on those cards and don't use them any more, at least not until you have your debts under control. After that, you can keep your credit fresh by using just a little bit and paying off the balance every month.

If you don't have a credit card, try to get one. Having a variety of different types of credit is good for your credit score, meaning that it's beneficial to have at least one credit card, as well as things like a mortgage and a car loan. Having and wisely using a credit card is also among the fastest ways to build good credit. Adding a new credit account also adds to your total available credit, which is good for your score. If your credit score is too low, however, you might not be able to get an unsecured credit card, which is what most people think of when they think of credit cards. In that case, you may still be able to get a secured credit card, which requires a deposit. A secured credit card can help you rebuild your credit safely.

Dispute incorrect items on your credit report. Although most people are not aware of it, studies have shown that a vast majority of credit reports on file contains some errors, and those errors rarely "self correct" over time but will remain there until you dispute them, It is possible to get a free copy of your credit report from all three credit reporting bureaus each year, so take advantage of that, and check to make sure every item in your credit history is accurate. You can dispute any inaccurate items by sending a letter to the appropriate credit bureau, but do make sure you can prove that an item is incorrect. Having derogatory items removed from your credit report can raise your credit score for obvious reasons.

Finally, pay all your bills on time. Late payments are very bad for your credit score, and the more late payments you have within a short period of time, the worse that is for your score. Making multiple late payments on one credit account is especially negative, so don't neglect an account because you feel like it's a lost cause. Your credit is never a lost cause. Raising your credit score can take quite a while, so it takes dedication and commitment. It's worth it, though, as it can get you better interest rates and deals, and save you money in the long run -- and that's a good investment.

Almost any consumer should be able to tell you that one of their primary goals would be to find out how to Raise My Credit Score and you need to know that this is something you can do yourself if you know how to do it and follow the right procedures. You do not need to pay some company do do something that you can do yourself and obtain the same great results. For more insights and additional information as well as the opportunity to get free copies of your credit reports, please visit our web site at http://www.credit-help-center.com

By Jon Arnold
Article Source: http://EzineArticles.com/?expert=Jon_Arnold