If you’re getting ready to apply for a house or an auto or student loan, you’ll want to make sure that your credit score is good and that your debt is manageable. Here are four tips to prevent bad credit to give yourself a good credit report in Philadelphia.
- Pay your bills on time. By far, the most important and yet the easiest thing for you to do to prevent a bad credit score. If you can afford to pay your bills on time, do so. Don’t put them off if you don’t have to. If you can’t afford to pay them, see where you’re spending unnecessarily and cut it out.
- Don’t come too close to the limit on your credit cards. For example, if your credit card has an $8,000 limit, don’t use $7,995 worth. Doing so can lower your score, regardless of whether or not you pay off the amount on time every month. It is better for you to use about 30 percent or less of your available credit if possible.
- Pay your bills in full. Only making the minimum payment can force you into a vicious cycle of increasing debt which can bring you bad credit. Track what you’re buying and how much it costs. Utilize your credit wisely and cut down on necessary spending.
- Don’t apply for too much credit too quickly. Having credit available is a nice luxury, but obtaining it can be tricky. If you go to apply for more than one credit card, a home equity line of credit and a personal loan all in a short time period, you will peak the curiosity of lenders, making them begin to wonder if you’re taking on too much debt. To keep potential lenders free of worry and keep your sky high, space out your requests for credit by at least six months or perhaps as long as a year.
If you are looking to raise your credit score or are in need of debt relief in Philadelphia, contact us at Quality Credit Repair by calling 888-399-3898 today!