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• Establish your First Credit
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• Credit Mistakes – Avoid Making them
• What Affects My Credit Score?
• Rights Regarding Credit Repair

Credit Mistakes – Avoid Making them

Credit scores are like the financial version of your facebook page. All one needs to do is to get your credit score and he or she can understand where and how you have been spending or investing your money. Since it is so important and maintaining a good credit score will help you with your future loan problems, it is imperative that you follow certain things in order to avoid mistake with your credit score.

1. Never ask a creditor to lower your limits: It is important to maintain a considerable gap between your available credit and your balance. Lowering your limit will affect that gap by further decreasing it. This will definitely have a bad impact on your scores. If you are getting a loan and a lender insists that you close your account or lower your limit, you might have to do it, in other cases, it is best to avoid such mistakes since they are sure to get you into trouble with your scores.

1. Never make late payments: Making late payments have a worse impact on scores which are high in comparison to scores which are already low. There is a possibility of your score dropping by 100 points because of one late payment. Especially if your score is beyond 760, it will affect you drastically. It is always better to ensure that you make your payments on time irrespective of what your score is.

1. New Accounts and Balance Transfers: If you are thinking of applying for a brand new account, think again. Getting new accounts will definitely lower your score. You can also get a low score of you are planning to transfer your balance from a card with a high limit to one with a lower limit. It is bad to concentrate all your balance or at least most of your balance on a single credit card. Be smart and get many cards with small amounts of balance on each. This way you can also be assured of not loosing your entire balance if a card gets lost.

These suggestions and pointers will only help you if your credit score is really low. If you have a high score of 700 and above then the increase in your points won’t be that high. This is not much of a problem since you will already be getting the best interest rates if your score is high.