Monthly Archives: October 2009

Importance of maintaining good credit ratings

Credit scores are very important for someone who is trying to improve his financial worthiness. Experts say that a person’s credit potential is determined on the basis of how he is managing his finance. There are still many people who are not aware of how their credit scores can affect their credit worthiness. It is important that you browse through the internet and read the credit card news and articles so that you can get the right education and be an informed consumer.

0% APR

According to the recent survey, many people had questions regarding their FICO scores. There were a variety of concerns amongst many people, like inactive credit cards they had, low interest rate cards, how many credit cards they should be having on an average, how to use the 0% APR credit cards and knowing ways to improve the credit ratings. If you are looking to buy a house sometime in the future and you are using one card while there are few other cards that have not been used for quite some time, it should be a good idea to start using the other cards and paying off the bills. You don’t have to apply for a new credit card and get hit with new inquiries, since you already have a past history. You need to make sure that all these accounts are showing a good history on your credit report. This will help to boost up your credit scores. Call the credit issuer and request for the updated monthly statement and check the limit on the card. You can also request the credit grantor to increase the limit after you start making timely payments. These timely payments will help in the long run especially if you are looking to buy a home in the future.

Credit cards can be kept active if you are using the cards once at least six months. If you are having multiple cards, like more than 15 and you are applying for a mortgage anytime soon, closing some of the cards will not help if you have been having such thoughts. You should be having a good credit mix on your credit report. Whether you have open or closed accounts, low balance cards or high balance cards, old or new, your scores matter if you have a variety of accounts. Closing an account does not have anything to do with your credit scores. Instead, it may go off your credit report sooner and negatively affect your lengthy credit history.