Credit is an important tool used to measure how responsible an individual is. Banking and lending institutions use your credit score to determine the level of risk associated with making funds available to you. There are several ways any individual can help, hurt and establish credit. Keep these things in mind when you attempt to improve your credit.

Helping your credit:

You can significantly improve your credit score by paying bills on time. One can even take advantage of automated bill pay services to ensure that the bills are being paid on time. Minimizing the level of debt you acquire is also helpful in boosting your numbers.

Checking your credit regularly is important, and you should make sure that all inaccuracies are reported and removed. By formally disputing aged items, you could see an improvement in your score within as little as a month’s time. Find additional tips on improving credit using a 4G wimax connection for research or by subscribing to financial newsletters.

Hurting your credit:

It may hurt your credit score to close down unused credit accounts. It’s better to keep the accounts open, even if they are currently not in use. Applying for credit can also be damaging, as credit inquiries made can cost you a few points per request. It is recommended to apply for credit only when it is needed.

Maxing out a credit card can also hurt a credit score. Many find it easy to transfer balances from other cards to one card with the lowest interest rate. If you are planning to do this, the math should be carefully researched to determine just how much in savings can be achieved by consolidating debt onto one card.

Establishing credit:

There are quite a few ways to establish credit. Consider using your high-speed Internet connection to open a secure credit card account online. By paying the full amount off monthly and using it as a credit line, you can build credit by handling the card responsibly. Many major credit card companies report these scores to all three of the biggest credit bureaus.

One way to use the card is to pay monthly recurring bills. For instance, through 4g wimax coverage, water or power bills can all be paid through the use of a secured credit card. One can also open a retail card at a popular furniture or general store. A person can make a small purchase and pay it off monthly to establish a favorable credit score.

There are ways a person can help, hurt, or establish credit. When you are disciplined and vigilant and monitor your credit score, a substantial improvement in credit standing can be achieved. Building credit takes time, but once you has a strategy in place, it’s not an insurmountable task.