Have you overextended yourself on your credit cards? Do you lay awake at night stressed about how low your credit scores have fallen? There is a way out. Follow this advice from the financial professionals. Set a goal, make a plan and execute it. Break your goals down into manageable parts. The first step in repairing your credit scores is to understand the components of a credit score and how and why they fluctuate. The three components are length of credit history, timeliness of bill pay history and percentage of available credit used.
The first step is security. If you’re accessing your credit scores online or shopping online, take advantage of the deals offered by Groupon and invest in quality security software such as Kaspersky. You need to be safe on line. Low credit scores are enough of a problem, dealing with identity theft can be a nightmare. Unfortunately, there’s no quick fix for length of credit history. If you’re just out of college beginning to use credit for the first time, it takes approximately two years to establish good (or bad) credit. That’s the average length of time credit reporting agencies prefer to see.
Second, paying bills on time is a critical component of your credit score that you can control. Set up an online banking bill pay system. Forgetting and delaying bill paying can become a thing of the past. No more lost checks in the mail. If you’re old enough to take on the debt, the credit agencies (& credit card companies) expect you to be responsible in paying it off when it’s due. There’s no negotiating or compromising on this one. Companies use credit scores to gauge their risk in lending to you.
Finally, don’t max out the lines on your credit cards. Try to stay within fifty percent of your credit ceiling for each creditor. This will help your scores increase. You can have lots of creditors and have excellent credit scores. The bottom line is that you’re responsible with the credit that you use. Best of luck on your journey!