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Five Reasons That Hold You Back from Attaining a Good Credit Score

– Posted in: life, Managing Your Finances, Money Management

There are far more than five reasons to watch out for if you are on your way to achieving good credit score, but these may be the most important.

Your credit score can make your life very easy or make it very difficult. Even with the worst credit rating you can sometimes get a line of credit. You just might not like the thousands of dollars in interest that your line of credit will cost you. People with low credit scores pay an extremely high rate of interest. You may find that the interest you end up paying would have been enough to pay off all of your debts to begin with.

Five Reasons That Hold You Back from Attaining a Good Credit Score

 Road Block #1 to a Good Credit Score:Identity Theft

Identity theft is probably the number one reason to keep an eye on your credit rating. If you have not had any credit inquiries done or you haven’t made any other changes to your credit and you see your credit rating dropping, it could be because someone else is using it. People who get involved with identity theft don’t always use your existing line of credit. They count on people not taking the time to check their credit rating. Since they aren’t using your existing credit, you don’t even know your identity has been stolen unless you pay attention to your credit rating. When inquiries are made it takes points off your score and is documented. If inquiries are on your report and you did not make them, contact your local authorities immediately.

Stop Little Problems from Turning into Big Ones

You may have bills you forgot about or weren’t aware of. By keeping an eye on your credit rating you can see when something is applied to your credit report. It is easy enough to contact a business to make arrangements with them. It could be that the bill got lost in the mail or you didn’t realize you owed the debt. By paying attention to your credit rating you can take of the problem right away thereby maintaining your good credit score!

Dispute Claims

If you have been unrightfully charged for a service and you don’t pay it, it’s going to show up on your credit report eventually. You can dispute the claim and get it off of your report before it does damage to your good credit score.

Learn What Works for You

If you are trying to raise your credit score you need to pay attention to your credit rating so you can see what is working for it and what is working against it. If you are using a particular plan of action this helps you to change your plan as needed so it serves you best.

Avoid Credit Checks

If you know what is on your credit report and you know your credit score, you can provide this information when you are trying to open a line of credit. This helps you avoid adding an inquiry to your credit report and further reducing your score. It also shows your potential creditor that you are trying to make an effort to improve your credit and that can help you have a better chance at a new line of credit.

Credit has never been more important. Watching your credit rating today or maintaining your good credit score is as important as getting an education and eating healthy. It’s just one small step in the act of leading a productive, stress free life.

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