Hond Financial

Posts Tagged ‘your credit repair’

This was the most appropriate topic of discussion that you as a reader should have for knowing what is good or bad for your credit score.

Repairing credit is most sought after affair.

APR are being raised by credit card companies and credit has been freezing up faster than you had ever thought it would.

Here is a list of the five inevitable mistakes you think would work in your favour but they tend to lower your credit score faster than ever.

1.If you pay your credit card balance every month to the minimum possible, your debt would get accumulated to a mammoth size. Your interest amount would be twice as much as your actual amount if you wake up one morning.

2.       Don’t try to figure my credit score improvement your credit score at all. It’s something like being an atheist or an ignoramus. In both cases you lose. If you don’t track your credit score, one fine day when you wake up, you will find that you have been ripped off your credit worthiness altogether. 

3.       One of my favourites. Close your old account after paying in full. By this way you have achieved two things you gave money without increasing your credit score. Moreover you removed your credit history created by that card over a period of time. This affects your credit score adversely.

4.       Open new credit card accounts with small balances all around. This would firstly lead to mismanagement of your financial funds and secondly it would make the credit card companies suspicious about your consumer behaviour. This kind of activity definitely gets noted and might even reduce your credit worthiness if not your credit score. Or don’t take debt at all in your life time. Though it sounds good at first, it might not help much. Current times demand debt and credit in addition to savings. Debt is more like necessary evil.

5.       Loan consolidation. Loan consolidation needs to be done the right way the first time. One thing accepted is the way it merges your debt and makes it easier to manage your funds.

But more important is if you try to consolidate three credit card balances each 3000 Dollars on a single one with zero interest credit card having limit of 10000 Dollars you are basically utilising 90 percent of the credit line and your credit score would see a sudden drop.

How to raise my credit score has always been on your mind. Please start thinking of how not to hurt your credit score

You have a better idea of what is good for your credit score and what is really bad. It is not enough to worry about the credit score alone. Have cashflows and improve your paying capacity over a period of time.With this I conclude this article. Hope you enjoyed reading this as much as I did researching and writing it down for the benefit of my readers. Moreover, the absolute importance for you is to have a lineage of clean credit knowledge base to make a thoughtful decision in buying a car or a house or insurance for your family.