Credit Rules to fix your credit
The rules give a direction to be followed by people. They essentially instill a sense of discipline to be followed in order to achieve a specific goal. When we talk of the credit worthiness and the rules to maintain the same, we have the five credit ruleswhich are considered to be the best. So here we go with them:
- Check the credit records for the accounts and negative records which still reflect in your account. These can be settlements, foreclosures, bankruptcy and other such cases. In such cases which are huge in nature remain and reflect on the credit history for a minimum of 7 years. However, if these still reflect on the credit history after the lapse of 7 years one needs to get them removed as they might be pulling down your credit score and credit worthiness.
- Check on the settled accounts .In most of the cases one can find that there are certain accounts which you had already settled but they are still reflected in your account. This can be a result of the wrong entries and errors. However, if you find it difficult to settle by your own you should consult your financial expert who can suggest ways to settle the same.
- One should never close their Accounts which are old. Suppose that you have three credit cards of which the first one has the least offers, is the oldest has a lower credit limit and is the one least used. However, this is the credit card which dates back to the days of college. Now, you should never close any of the credit card accounts. Closing the one which is the oldest will be very wrong. Firstly the credit cards length of service is itself evidence to the creditors that you are financially disciplined and have successfully held the credit card for such a long time. It is also an indication that the lenders respect you as a financially credible person and allow you the credit line. Thus continuing them can further enhance your credit score and the credit worthiness.
- Define an upper limit to the credit card usage: If you possess multiple cards, some day or the other while shopping you may get tempted into buying stuff which may not be needed by you instantly. This activity might be repeated by several cards, many times and you find that your spending have shot up to 40-60% of your credit card limits. This means that the repayments are going to be under stress and you might miss on some of the payments or pay just the minimum due amount. This might be a bad situation from the credit perspective and better avoided by setting a limit to your credit card expenses in the range of 25-30% of the permissible credit card limit.
- Seek the help of the Experts: When you are faced with a critical financial situation you need to consult a professional for guidance. They actually listen to your complete financial history. Understanding the same they can suggest ways which might suit your situation best. Tackling of financial issues and debts is not that big provided you are dealing with them in a planned manner and taking calculated steps.
If you are looking forward to settle your problems of debt, follow the steps and the credit rules mentioned earlier and you can surely get through the process. These steps have now been proved multiple times and one needs to just follow them for the best debt resolution and credit standing.
Credit rules the current world. Think of any domain or area be it business or personal life, one would require credit at some point or another in life. So it becomes all the more important to have an understanding of the credit rating scores and the way they can be built for easy lives.