Good credit management practices that can help raise your credit score over time depends on how consistently you paying your bill on time, you keep your credit card balance low and apply for or open new accounts only as needed.

Today we are going to learn 5 steps to a Healthy Credit Score.

Step 1

Get your credit report and review it:

Your Credit report is information that is stored in computers about your personal credit worthiness and debt repayment history. Review your credit report at least once a year.

It is your job to make sure all information on your credit report is accurate and complete before you apply for loan, credit card or buying a home.

Step 2

Get Out of Debt:

Getting out of debt is not a simple task because it takes practices and determination.

Debt in America has become the number one disease that causing so many people to loose their home, car repossessions, and finally lead to bad credit.

Simple learning budget techniques or taking a budget class can help you get out of debt and prevent you from getting in a similar incident in the future.

Some examples for getting out of debt are:

1. Stop spending and save more
2. Develop a monthly spending plan
3. Make a list of all your debts
4. Make choices that will help you get out of debt.

Step 3

SAVE SAVE SAVE:

This is the opposite of what we will normally do.

We’re so used to spend more and save less. You don’t need to start saving a big chunk of money. The most important thing is getting in to the habit of saving a minimum of $20.00 a month is a big step toward getting out of debt and consequently lead to a healthier credit score.

Some tips for saving are:

1. Buy only what you need
2. Don’t shop when hungry
3. Make a list and stick to it when going to shopping
4. Don’t shopping when angry or depressed
5. Don’t take the kids along when shopping

Step 4

Invest in what you know:

This can be by applying for a part time job, or turn your hobby in to cash, and garage sale. If making payment on your home is becoming difficult, maybe you should consider moving in to less expensive home. Remember that having a house can be a big asset however it can be a total misfortune when you can pay for it.

Step 5

Make every effort to maintain a high Credit Score:

This is the key to have a Healthy Credit Score. I know sometime people feel overwhelmed with credit report process.

Maintaining a high credit score take a long time to occur following this guideline it will improve over time.

1. Review your credit report at least one or twice a year from each credit bureau
2. Evaluate your credit report carefully
3. Dispute any negative item with the credit agency and document it
4. Pay you bill always on time
5. Don't allow any creditors pull your credit unless it necessary
6. Delete any inquiries you may have on your credit report
7. Make a plan to pay down all your credit card debt

Higher credit scores can help you qualify for low refinance rates on your mortgage and reduced rates on credit cards.

Having a credit repair guide allow you go through the process easily, especially if you have little or no idea on how to have a Healthy Credit Score.