Author: Richard Greenwood Added: October 1, 2008
It makes sense that in today's volatile economy, the very best way to ensure your financial security is to protect your credit at all costs. But for some people, this can prove somewhat of a challenge, as their credit score is less-than-stellar. Let's face it - we've all been a little late in paying the bills at some point. But as the current economic crisis has taught us, it's smart to stay on top of your money - and your credit rating. After all, your score can make the difference between thousands of dollars spent in interest on your mortgage and car loans! So regardless of whether your credit is poor or if it's just okay, here are some expert tips for improving your credit rating. Stay on top of your bills. Nothing can deflate your credit rating like a late or unpaid bill, as this is the most significant factor in determining your credit rating. The highest priority bills are those from your credit cards or finance companies as failing to pay these on time is likely to result in bad marks on your record! Today, most credit card and utility companies offer free enrollment in automatic bill payment. Take advantage of these options, as your bills will be automatically deducted from your bank account - and you'll never have another excuse for a late bill again. Carry less debt on your credit cards. Another important factor in determining your credit rating is the amount of debt that you carry on your credit cards. If you're in the habit of spending and carrying a monthly balance on your credit cards, hide them in your sock drawer and start paying down that massive debt. If you remove your credit cards from your wallet it will make them less tempting to use and ensure you spend in your means. I have some friends who put their credit cards in the freezer in a plastic bag filled with ice! Everyone is different but find something that suits you! Don't close old accounts. This is perhaps one of the most surprising tips, as many credit counselors previously told their clients to close all accounts that they weren't using. Closing too many old credit card accounts can even hurt your rating as it lowers to amount of credit available to you. Get some counseling. Credit counseling is not just for those faced with bankruptcy. If you think your credit score needs some beefing up, then try enrolling with your local credit counselor. These counselors are trained to help you create a household budget and train you to live within your needs. The skills they teach you will not only help you get in control of your debts now but will help you repay debts effectively throughout your life. Knowing and protecting your credit rating is perhaps one of the most important things that you can do during the current credit crunch. By boosting up your credit rating you can save yourself big money in the long term on interest charges and will ensure your not on the casualty list of the credit crisis.
--- Richard Greenwood heads up finance comparison website click4credit.com.au which helps consumers find the best credit card including Visa credit cards.
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