Applying for new credit can be an intimidating prospect. Many people know that each time your credit history get checked, it affects your overall credit rating in the negative, so it’s understandable to have a little trepidation about what credit you apply for. Here are some credit tips that will have you applying for new credit in a smart and well-informed manner in no time.
Credit Tip #1: Know Your Score
It is shocking how many people do not bother to learn their credit score, particularly these days. It is free to obtain your credit score and normally very cheap to obtain a copy of your detailed credit report. You can use this report to check for accuracy and to determine what debt you may need to reduce in order to increase your score. And that’s just the tip of the iceberg in terms of what your credit report can do for you. In terms of sheer self-education, there is no better credit tip out there than to get your hands on a copy of your credit history right away. If nothing else, it will show you just where you are, and from there you can figure out how to get to where you want to be.
Credit Tip #2: Apply Smart
Number two of our three credit tips is slightly less obvious. Having a good credit score means having little credit debt and good standing with your creditors. It does not mean having twenty open lines of credit to your name. Some people make the mistake of thinking that more credit is better, but that is not the case. Most experts say that having a few lines of credit in good standing with little debt is the best way to achieve great credit ratings.