If you are in the market for a new home, a car or even a cell phone, it is more important than ever to make sure your credit is in great shape.
Whenever you apply for any loan or even a job, your credit is scrutinized to assess if you are a “good credit risk.” If you have a low credit score or a rocky credit history, you will see it in higher interest rates that can cost thousands of dollars more than someone with good credit.
The first step to keeping your credit in good shape is to check your credit report. Some things to look for include:
* ERRORS ON THE REPORT
Credit report errors are surprisingly common and can take months to correct. Regularly monitoring your credit report can help you catch mistakes early.
* DEBT TO CREDIT RATIO
If you are maxing out your credit cards, lenders take this as a sign that you are borrowing as much as, or more than you can handle. Keep your balances at least 50 percent below your credit limit.
* LATE PAYMENTS
Making all your payments on time means you avoid a black mark on your credit report and can save you hundreds of dollars in late fees.
* OLD ACCOUNTS
Consider leaving old accounts open even if you don’t use them much anymore. The length of your credit history is a factor in your credit score so it pays to keep accounts open.
Checking your credit standing with a service like FreeScoreOnline.com means you will instantly receive your credit scores from the 3 credit bureaus as well as credit monitoring and alerts.
When you sign up for credit monitoring, an authorized agency will notify you whenever an update is made to your credit report. It’s a great way to keep track of your credit standing and you don’t have to remember to check your credit report and score several times each year. Credit monitoring is also a good way to catch identity theft early.
Get your free credit scores with a Credit Diagnosis trial at FreeScoreOnline.com. Now, more than ever, having good credit is important, so keep yours in top shape.
Sponsored content provided by ARALifestyle.
