Timely payment of your credit obligations and lowering the amount of the debt you currently have on your credit cards and loans are two of the main factors in maintaining a good credit score.
Time is another important factor because negative information in your credit history has a limited lifespan as described in the segment “How Long Can Negative Information Be Reported?”
Take action and create a plan to improve your credit score:
- Get a copy of your report.
- If you need help understanding the information, look for an accredited credit counseling agency like those that are members of the National Foundation for Credit Counseling.
- Pay down your debts and call your creditors if your situation does not allow you to make payments on time.
- Keeping your creditors informed will make them more receptive to working with you.
- Focus on paying first the debt with the highest interest rate.
- Avoid applying for new credit unless you really need to open new accounts. When you apply for new credit, inquiries are generated, which may lower your overall score.