August 31 2016
It’s no secret that the ability to access lines of credit can make your life a whole lot simpler. The truth of the matter is many people rely on various lines of credit to make their everyday life go by a lot smoother. In order to make sure you can sustain these life-saving lines of credit, you must foster the various elements involved in making your credit report strong.
If you’re finding that your credit report is lacking and wish to increase your available lines of credit, then there are several tips here you can follow to improve and sustain a strong credit score and report.
Tip #1 – Fix Incorrect Credit Report Information
There are a total of three primary credit bureaus: TransUnion, Equifax and Experian. Those who issue lines of credit send inquiries to each of these organizations to help determine your overall creditworthiness. Therefore, it’s imperative that the information within your credit report is as accurate as possible.
The most effective way to go about this essential task is to obtain your free credit report and then audit the information within the report. Make sure all the elements within the report are accurate. If you spot something that’s not correct, you must communicate with the credit bureaus in writing. You may be able to send a correction notice directly to the credit bureaus online. Be prepared to support your corrections with appropriate documentation.
Tip #2 – Make On-Time Payments
While this may seem like a common sense tip, the importance of on-time payments make it worth mentioning. If you have a line of credit with a monthly bill, always make sure you can make the minimum payments on time. Failure to do so can severely impact your overall credit score. Work with your creditors to create a payment plan that works for you. Remember, your creditors want their money. So many are willing to negotiate payment terms to ensure you never miss a payment.
Tip #3 – Monitor Your Utilization Ratio
The common rule of thumb is to only use a maximum of 30 percent of your available credit. However, some experts suggest this utilization rate should be lowered to 20 percent of your overall credit. Therefor, if you have a credit card with a $1,000 line of credit, keep the charged amount at $200 or less. Doing so will dramatically enhance your overall credit score and ultimately provide you with lower interest rates and better credit card offers.