Getting Out Of Debt

Did you know that a simple three-digit number could be that singular factor that could be standing between you and your dream? This could be buying a car, purchasing a home, starting a business, or even something as simple as managing your personal finances.

Your chance at effective personal finance management hinges typically on the numbers that fall between 300 and 850. Ready to boost your credit score? Here are some strategies to fix your credit:

Strategy # 1 – Start With the Smallest Debts: The ‘Nuisance Balance’

First and foremost, you need to begin your credit card debt cleaning by attacking the smaller debts and balances on your credit cards. The first item that is considered is how many of your credit cards have balances that remain unpaid. So, if you’ve made a purchase of $30 on one card, and $50 on another, it might be wise to pay these off, or use a single card for both transactions. Eliminate the debts off these cards, and choose a single card that you will be using for your purchases. This really helps your credit rating.

Strategy # 2 – Maintain & Track the Balance of Your Credit Card

Having a credit card itself impacts your credit rating – both positively and negatively (more on the positively in the next strategy). Then there’s your debt percentage and payment history that comes into play as well. Having a balance – or debt – that exceeds 30 to 35 percent is considered poor. For instance, if you have a $1000 limit on one of your credit cards, you may want to maintain a balance of no more than $350. Having a balance more than that could hurt your score substantially, even if you make timely monthly payments.

Strategy # 3 – Don’t Close Old Credit Cards

Another factor that is considered when calculating your credit score is the length of the time you’ve held a credit card, and how many. Even if that credit card has remained inactive for a while, you are granted a positive review from each creditor. If you have some credit cards that haven’t been used for some time, collect them and lock them up in a safe place, where you will forget about it.

Strategy # 4 – Pay Your Bills On Time, Each & Every Time

This refers to all your bills, not just those pertaining to your credit cards. While not all your bills impact your credit rating, falling behind on any one of them could, however, land up on your report. So, make sure you set a monthly reminder for their payments.

Strategy # 5 – Don’t Apply For Additional Cards Unless You Really Must

Every time you apply for new credit – in form of credit cards or loans – your credit score takes a hit. If you have a higher credit score – let’s say between 750-800 – you will lose some points. Minimize your usage of credit.

Strategy # 6 – Keep Track & Check Credit Reports For Inaccuracies

It isn’t uncommon for credit card companies to make errors that end up misrepresenting your credit. 1 in every 5 American have or have had an error in their credit reports. According to a comprehensive study by federal regulators, approximately 5 percent have credit report errors that they are being overcharged for credit card debts, auto loans, insurance policies and other financial obligations.

With 10 million Americans being overcharged, are you one of them? Check your credit card data through credit reports, for identify issues and payment issues or any other possible mistakes that could be negatively impacting your scores.

Thinking about how to repair bad credit? Maintaining a good credit score isn’t impossible. Begin by checking your credit and disputing errors now. QuickCreditRepair helps you with the tools for free! Visit their website for a free trial, and say no to a bad credit!