The purpose of the article is to give you some information on Protecting Good Credit. Your money, how you use your money, if you pay your bills on time, and a host of other factors make up your credit rating. When you use your money wisely, when you pay your bills on time and if you have been responsible in regards to money, you will have a good credit rating. Even if you don’t have a good credit rating now you can rebuild your credit to be eligible for additional credit to make those larger purchases when needed.
When a good credit rating is important
Various times of your life you will want or need additional money and where will you come up with this extra money? Through credit cards, credit lines and loans, you can obtain other money to make large purchases such as to buy a house, buy a car, go to college, and even when you ‘run low on cash’ you can use your credit cards to buy gas or groceries when you have no money. Credit is an important part of helping you meet your obligations and life goals when you don’t have the cash in your pocket.
Three steps to keeping good credit
In order to keep your credit rating and your credit history good you need to continually be aware of when your bills are due. Paying your bills on time is an important factor in keeping your good credit rating. Paying your bills late can lower your credit rating and when creditors look at this you may not be eligible for additional credit lines.
Do not max out all of your credit cards. Creditors will look at how many credit lines, credit cards and loans that you currently have and these companies will also review whether you have used up all of the possible allowable credit or if you access your credit cards only as needed. When you carry one or two credit cards that are at their limits and you apply for another you will not be considered a good credit risk, which could put you in jeopardy when emergencies arise.
The key to your future is to keep open lines of credit, credit cards and a good standing regarding your credit. If you find that you have a great job that pays well and you would like to close many of your credit lines, rethink this just for a moment, as your life can change drastically in moments and you could need emergency money, money to send the kids at school, or to fix the car that broke down once again. Closing all of your credit accounts just because you have paid them off can put you in a predicament if a life tragedy or emergency hits.
To get good credit you will have to work a little at it by, paying your bills on time, making purchases the not only you want but also have a real need for, and you will keep your credit report up to date without errors.
Other factors involved in good credit
If you have been paying your bills on time, but you have a line on your credit report that is an error, write to the credit-reporting agency and have this item remove. Simply stating to potential creditors that this item is not your account may not be ‘good enough’ for them, and they will put your loan or credit line on hold until the matter is cleared up.
Divorce can cause credit problems. It is important that you realize if your name if on a credit line, loan or a credit card and the payments are past due you can be held liable and you are responsible for bringing the accounts up to date. Even if you must close the account to any further purchases making payments will keep your good credit in good standing.
A death in the family can be a difficult subject, but when one spouse dies and your name is on the credit account, you still need to continue paying on accounts that you are responsible for. Be sure to contact your creditors if you need a little extra time in making payments, but making payment arrangements or changing the due date of a bill can give you that extra time you need to keep your credit rating in good standing.