Good credit may seem like a no-brainer for most people, but to some it can seem like an unreachable goal. Anyone who has experienced trouble with debt or bankruptcy knows that keeping your credit clean is a daily challenge, but one that will win in the end.
Fighting For The Future
If you have suffered from debt troubles you have a tough road ahead to rebuild your credit. The most important aspect of credit boosting is new credit with a positive history. This means finding one to two low limit, low interest lines of credit and maintaining a small balance for a period of twelve or more months. Making timely payments on a balance less than 40 percent of the overall spending limit over a series of months is one of the quickest ways to boost credit. It is also important to routinely monitor your credit report for accuracy and any signs of distress. Keeping an eye on your credit will also provide positive feedback about your progress, making it more likely that you stick to good habits in the future.
If you are in the fortunate position to have never experienced trouble with overwhelming debts, delinquency or negotiations, consider yourself lucky. However, even you have to work to keep your credit in good standing. The first priority is keeping your debts manageable. This doesn’t just mean lower balances, but also having a savings account ready to cover payments in the event you were to lose your job or primary income provider. It also means keeping your eye on financial goals. Everyone should have both long and short terms goals set for their debts, meaning they are using credit to reach a goal not as a matter of purchasing convenience.