- Paying on Time Is the Biggest Part of Your Credit
Although
several factors come into play when calculating credit, your history of
paying debts on time is almost always the decisive factor. Your credit
is damaged when a debt is 30 days late or more, then again when it
reaches 60 and 90; at that stage, it usually goes into collections. If
you have a bill you can't pay on time this month, call to ask about a
payment deferral.
- Don't Close Revolving Credit Lines After Paying Them
Revolving credit lines
are credit cards you can pay off and re-use multiple times. They're the
opposite of installment credit lines, such as auto loans, which you pay
off once and for all. The age of your accounts is a factor in your
credit score, so leave any fully paid-off revolving credit lines open.
- Avoid Taking Out New Credit Lines Before Buying a Home
One
of the biggest mistakes you can make as a prospective homebuyer is to
take out new credit within six months before entering the market. No
matter whether it's an installment-based auto line, a short-term loan
for vacation, or even a new credit card, wait until afterward.
- For the Most Part, Don't Worry About Student Loans
Student
debt is skyrocketing in the United States, with many graduates carrying
tens of thousands in debts that hamstring their financial lives for
years to come. However, as long as you're paying on time, many lenders
are willing to take a lenient stance over student loans. If you accepted
federal student aid, be sure to investigate repayment programs that
will reduce your monthly payment burden.
- You Have the Right to Dispute Everything on Your Credit Report
By going to AnnualCreditReport.com,
you can download a free credit report from each of the three major
credit bureaus once yearly. You have the right to dispute any adverse
credit items that you don't recognize or disagree with. If creditors
fail to respond within a certain timeframe, items can be removed.
- Don't Take Medical Debt at Face Value
Medical
debt is a factor that has tripped up many potential homebuyers. You can
often get bills reduced by asking for an itemized list of medical
charges. Likewise, requesting in writing the credentials of anyone who
made the decision to refuse insurance coverage for treatment may lead
the decision to be overturned.
https://amandaspears.gobellator.com/blog
No comments:
Post a Comment