So you have a copy of your credit report, now what?
It is not enough to simply be aware of your credit score if you wish to improve it. Rather, you need to have some credit management solutions that work to manage your score and improve it. One simple management technique that is very easy to do, yet few people pay attention to it, is to manage the use of your credit cards.
This may sound like common sense, but when we discuss managing the use of credit cards, it is not about not using them, but rather about how often you use your cards. Everyone knows that maxing out your credit cards is not good (in fact, you really want to keep your balances on cards below fifty percent - lower is even better). Instead of managing the balance, however, let's look at simply using your cards in a rotation to keep more of the beneficial accounts active and reporting.
The longer you have an account open for, the more beneficial that account will be (if it is in good standing of course). It does not do much good, however, to have a long standing account that you don't use. After a period of time where a card has been inactive, the credit card holder will often simply stop reporting to the credit bureaus. If that account is in good standing, you want them to report each and every month.
A good rule of thumb is to use each of your credit cards at least once every six months. Even if you simply use a card to buy gas, then pay it off in full when you get your bill, this activity keeps the company reporting to the bureaus. More importantly, if the account is in good standing and has been open for a long period of time, it keeps the company reporting a positive account to the bureaus.
If you have cards that are old and you have not used in years, pull them out, dust them off and be sure to use them a couple times a year. In addition, if you have cards you have not used for a while, do not cancel them! Not using your credit cards, or worse yet, canceling them, negates all the years of beneficial reporting they can bring you.
This simple tip is easy to put to use. Be sure to use this together as a complete credit management solution with the additional tips presented below.
Article Source: http://EzineArticles.com/5883038
It is not enough to simply be aware of your credit score if you wish to improve it. Rather, you need to have some credit management solutions that work to manage your score and improve it. One simple management technique that is very easy to do, yet few people pay attention to it, is to manage the use of your credit cards.
This may sound like common sense, but when we discuss managing the use of credit cards, it is not about not using them, but rather about how often you use your cards. Everyone knows that maxing out your credit cards is not good (in fact, you really want to keep your balances on cards below fifty percent - lower is even better). Instead of managing the balance, however, let's look at simply using your cards in a rotation to keep more of the beneficial accounts active and reporting.
The longer you have an account open for, the more beneficial that account will be (if it is in good standing of course). It does not do much good, however, to have a long standing account that you don't use. After a period of time where a card has been inactive, the credit card holder will often simply stop reporting to the credit bureaus. If that account is in good standing, you want them to report each and every month.
A good rule of thumb is to use each of your credit cards at least once every six months. Even if you simply use a card to buy gas, then pay it off in full when you get your bill, this activity keeps the company reporting to the bureaus. More importantly, if the account is in good standing and has been open for a long period of time, it keeps the company reporting a positive account to the bureaus.
If you have cards that are old and you have not used in years, pull them out, dust them off and be sure to use them a couple times a year. In addition, if you have cards you have not used for a while, do not cancel them! Not using your credit cards, or worse yet, canceling them, negates all the years of beneficial reporting they can bring you.
This simple tip is easy to put to use. Be sure to use this together as a complete credit management solution with the additional tips presented below.
Article Source: http://EzineArticles.com/5883038
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