Unfortunately, your credit score is a major part of your financial life. Whether you want to or not, you need to have good credit, and that sometimes means having credit card and some of the debt that goes along with it.
If your credit score is less than perfect, it could very well make that car loan or mortgage impossible. Boosting your credit score is important, especially if you intend to make a major purchase in the near future. The higher your credit score, the better loan you will be able to obtain.
Having Too Many Credit Cards
If you are considering making a major purchase in the near future or are simply interested in cleaning up your credit scores, it is very important to take a good, long, and hard look at your credit report. You are entitled to one free report per year in order to achieve this task.
If you have too many credit cards open that you do not use, go ahead and close them. It does not look good on a credit report to have too many credit cards open and not used. Besides, every time you open a new credit card application, it appears as a hit on your credit report and can actually lower your score.
The best thing to do in this scenario is to lower your credit score by closing out those accounts. When you call, make sure that you do not let them entice you into keeping that card for any reason.
Take a Good Look at Your Credit Report
It is in your best interest to set aside some time and go over your credit report with a fine toothcomb. There may just be one, two, or more mistakes against you on that report. Look over the report and call the credit-reporting agency to make any and all corrections necessary on your behalf.
Revolving Credit
Having revolving credit is a good thing if it is in small increments. If you can show that you have credit card debt but pay it off every month, then you will be in good shape. Having too many cards and only paying small amounts on each is a negative strike.
Look into obtaining a new credit card with a really low rate and balance transfer all those other smaller credit card amounts onto that one new credit card. Then go ahead and close all the other credit card accounts completely. This shows savvy and smart financial planning on your part.
By utilizing these simple tips, you can clean up your credit report in no time at all.