Your credit score is an extremely important and influential number. If this score is not ideal then you may need to use credit repair steps to raise your credit score. Once you have this score where you want it, you will need to take some steps to protect your numbers. Credit repair is important, but once this is done you will also need to practice credit score protection methods and techniques as well. Budgeting, smart financial planning, proper organization, and changing your spending habits are all steps that you can take to keep your credit score high, once you have it repaired. You will also need to monitor your credit reports and scores to ensure that no mistakes occur and to prevent or detect any identity or credit fraud.
How Budgeting and Financial Planning Can Help Protect Your Score
As many of you know, your credit score is a reflection of your ability to repay your debt and your history of payments. Keeping your credit score at a level where you feel comfortable is very important. Proper financial planning and budgeting are both very important factors in helping you keep that score right where it is. This means making sure that you are paying all of your bills on time and paying off all of your debt in a timely fashion. Following these two simple steps will ensure that you are not seen as a high credit risk and will ensure that any credit applications you submit receive optimal interest rates and terms.
Don’t Forget About Any Correspondence Received From Creditors
Receiving a correspondence for a collection agency is never a pleasant thing to receive in the mail. Usually these notices are for an outstanding debt that you owe to the company. It is extremely important that these notices are answered in a timely manner. You will usually have about thirty days to dispute a correspondence from one of these agencies. After that time has expired, the debt will then be seen as valid. If that happens, your credit score is going to reflect that in a negative way. So stay on top of all paperwork that you receive from any creditor or collection agency and this will help protect your credit score.
Always Limit Your Credit Applications and Spend Available Credit Wisely
Once your credit score is excellent, thanks to your credit repair efforts, make sure that you use your available credit wisely. Limit the credit applications you submit, and if you are looking for a new card, or any other type of credit, make sure you submit your applications around the same time. Numerous credit applications over an extended period of time can harm and lower your credit score, so if you are looking for a new credit type make sure that you put in all the applications within a short time. This will allow possible creditors to evaluate your credit reports and understand that all of the inquiries are related. Otherwise your credit report may give the appearance that you are desperate and need credit, which causes your credit score to drop and will hurt your chances of approval, or the best possible interest rates and terms.
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