It’s been our experience that a lot of people really don’t care about their credit until they need it.
You need your credit. You need credit to buy a home. You need your credit to buy a car or to shop. To get the best rates you need your credit to be Great! What do we suggest?
1. Don’t Cancel Existing Accounts – unless they are store cards (without a Visa/MC logo)
Many people think paying for stuff in cash and paying their credit cards and closing them will help them achieve better credit. Wrong!! You need to keep credit lines open. Closing down credit cards is closing down your access to credit. Not a good choice. Only close down store cards. Store cards for a particular store limits your access to credit in one store. So even if you have a $50,000 credit line in that one store it does not help you when you are looking to buy gas or buy a plane ticket….
2. Open a New Account to Help Your Credit
Opening a new account could actually help your credit score. For a given amount of debt, being granted new credit will lower your debt to credit ratio.
But unfortunately, opening too many accounts at once will negatively affect your score.
3. Ask for a Credit Limit Increase
Like opening a new account, getting a credit limit increase will lower your debt to credit ratios for a given amount of debt. You should keep your debt ratios low. Just because you have more money to spend doesn’t mean you need to use it. But again, don’t ask for a credit limit increase on all of your accounts at once, as this will generate too many recent inquiries.
Need help fixing your credit? Contact us. 844-We-Fix-Credit
We are here to help!
You just got your tax refund, or maybe a raise, or maybe you just worked overtime and had a few extra dollars weighing down your pocket. You’re smart. Instead of spending the money on something you really don’t need you decide to pay off some debts. Ok what’s the Million Dollar question? What debt should I focus on first. Well in our minds the choice is easy. Pay off a credit card; and preferably one with the highest interest rate first. You see paying off a credit card will allow you to use the money again if need be. If you paid off a car note or a student loan you can’t use that money again. Note an installment loan is given once and once it’s paid off-account closed. Your debt utilization ratio will be in your favor if you paid your credit cards first.