Eight Pointers for Improving and Managing Your Credit Score

Having good credit is essential if you are considering on purchasing a home or buying a car. Your beacon score determines how well you have done with creditors in the past and present. Having a low beacon score can hurt your chances of securing low interest rates attached to your home and car payments.

I would like to share several pointers that should help you improve, rebuild, and take care of your credit.

Pointer One-Make sure that you pay your bills on timely manner. I know this sounds simple, but one late bill can seriously lower your credit rating.

Pointer Two-It is easy fall in debt with multiple credit cards. It would be wise for you to lower the amount of credit cards you own. Many people quickly fall into debt by yielding to the temptation of using several credit cards for shopping sprees and etc.

Send a letter to your creditors requesting that they close your accounts and then you should report this change to all three major credit bureaus

Pointer Three-Try to avoid bankruptcies if you can help it. A bankruptcy can remain on your credit report for up to ten years! Tax liens and collection accounts can also cause serious damage to your credit score. Please pay your property taxes on time and negotiate payment arrangements with your creditors so they will not turn your outstanding debt over to a collection agency.

Pointer Four-You should be aware of the credit amount that you can be responsible for. If your creditor extends too much, simply write them a letter and request a reduction. This pointer can help you stay out of serious trouble!

Pointer Five-Consider getting a small loan from a local community bank or credit union. Offer to use the money in your savings/checking account as collateral for the loan. Make sure that you request for the bank to report the loan to all three credit bureaus when it is paid off. This pointer will increase your credit rating significantly.

You can also make an arrangement with a family member or friend to co-sign on a small loan for you. Paying the loan back on time will increase your credit rating and your co-signers credit rating as well.