By | Karen Anthony
If you have an outstanding credit score, it will save your hard-earned dollars while you pay off the interest on your loan. When your score is 700, you are all set and have a good rating. Usually, higher scores mean cost savings, perquisites, and things like that. When you apply for a home loan or car loan, the lender will look at your score and decide whether to approve or reject your application.
According to an article published on https://www.forbes.com, one of the ways to improve your credit score is by determining whether your credit report is correct or not. If there are any erroneous entries, you need to get those rectified. Here are three tips to maintain an excellent credit score:
- Keep an eye on credit rating for mistakes
Erroneous entries in your credit report or identity theft can affect your score, putting you in trouble. You can sign up on numerous sites to get your credit score checked. Make sure you consult with these reporting agencies at least once every year.
When you spot errors in your credit report, take the right steps to challenge the mistakes, such as sending a letter to the three credit bureaus – Equifax, Experian, as well as Transunion. Then, if you have multiple late payment entries in your report and they are correct, disputing will lead to a lesser score. Therefore, check before you write a letter.
In case, for example, if you want to shop using Fingerhut, you need to enter the right information in the application section. Any mistake will disqualify you.
- Make all your payments timely
Your payment record has an impact on your credit score. Make sure you pay all your bills and dues on time without fail. All you need to do is mark the payment dates on the calendar or opt for auto payments. This way, the monthly payment would be debited from your bank account on the due date.
Sometimes, the late or missed payments may be old;however, they remain on your credit report for seven long years. Then, the negative effect will decrease over the years. Many negative aspects have an insignificant impact on the score after two years. Therefore, make your payments on time to have an outstanding credit score. You need to become patient in such matters.
- Focus on your credit mix
Credit mix means the manytypes of loan-related products in your credit report, which has little impact on your score. Then, it is good to consider it. If you want to diversify your credit mix, you can opt for a low-interest loan you are confident of repaying on time. If you have not used credit cards until now, you can opt for one at least, the charges being little each month. Make your monthly payments on time if you want to use credit cards. Though a great credit mix will help you maintain a great score, you should not apply for any loan that you do not require or unable to repay.
Now that you have these tips handy, it will help you maintain an excellent score. Get your free score from reliable sites.