There are many tips to maintain a good credit record. Almost everyone at one time has experience a late payment, loss of job or some other occurrence that has forced you to not be able and pay a bill. What you do from there can mean much.

Trade history is very important today. It allows us to buy a car, home, get a better rate on our insurance and even allow us to get hired by some companies. Some say that too much rides on a payment history score.

There are steps to take to maintain your installment rating. If you currently have a good record, continue making your payments on time. Keep your debt to income ratio within balance. You do not want to close out current charge accounts. This can take away from your current ability to get a loan. Having to high of a ratio, can prevent you from getting new loans.

If you are experiencing late payments now or just went through a bankruptcy, there is hope. Do not let the lateness force you into hiding. Contact the lender and explain your situation. See if they can offer a forbearance on the account temporarily or allow you to make interest only payments for a month or two to get caught up. There are different options available.

Do not ignore the problem as it can get worse. The minute you go over 30 days late, they can and usually will report it to the major credit bureaus. If you can contact them prior to the 30 day period, they might be more willing to assist you. Once you hit over 60 days, you can see your score come down several points. It can take over a year to make those points back up.

If you have just experienced bankruptcy, do not jump back into trade accounts. This is especially true if you filed due to job loss and are still experiencing financial difficulty. Wait until you are employed and have the funds each month to make a small payment. Try getting a card through a major lender that is not predatory. You might need to get a secured card, but it will be reported to reporting agencies and allow you to build you credit back up.

People have reported being able to buy a home in 2 to 3 years after filing when they work on re-building their credit the proper way. Being smart when you restart your history is what you should be aiming for. Having a plan to control spending, and how you will make major purchases will prove to yourself and banks that you are worthy of their business.

You are allowed a free report each year. Since there are 3 major bureaus, many people set up to get one free every 4 months from one of the companies. This allows you to keep an eye on your payment history to make sure nothing has been erroneously reported or that you are a victim of identity theft. If you have experienced credit problems, you can place a letter of explanation in your file. Doing so is one of the main proactive tips to maintain a good credit record.

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Category: Finances
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