Bottom Line--Kitsap Bank's Blog
Getting Your Credit Back On Track
If you’ve experienced a financial challenge, there are a number of things you can begin doing to get your credit record back on the right track.
Use Automatic Bill Payments Paying your bills on time, every time is the best way to start rebuilding your credit. To ensure that the company receives your payment on time, set up automatic bill payments through the bank. Once set-up, the payments will occur automatically, so you’ll want to make sure you have enough money in your account to cover the payment. Otherwise, you could incur costly overdraft fees.
Don’t “Take It To The Max” If you use too much of your available credit, it can negatively affect your credit score. Experts generally advise using no more than 30 percent of your available credit.
“Will you be paying with your store credit card today?” It seems that wherever you shop, you’re asked to open up a store credit card. The sales associates make it tempting by offering sometimes deep discounts. However, be mindful of applying for too much credit in too short a time. Your credit score can go down if you open a lot of new accounts in a short period of time.
Pay Off Your Credit Card To build credit and avoid costly finance charges, pay off your credit card every month, on time, every time. Paying off your card builds credit better than carrying a balance.
It’s a Marathon; Not a Sprint Credit scores are built over time. If you have a long credit history and make payments on time, you’ll appear to be a lower credit risk.
Keep In Mind… Certain negative information will stay on your credit report for a long time. Bankruptcy will be on your credit report for 10 years, foreclosure for 7 years, and lawsuits/judgements for 7 years or longer.
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