mortagesandforeclosures

by John Slidenger

Good loans require very good credit scores. If you still want to borrow money in this tough economy, you better have very good scores. Below are some ways to maintain it.

Credit monitoring services like ones from myFICO is very good because it automatically keeps track of your credit report and alerts you whenever there are any changes. You can of course choose to do it yourself but that's 1000x harder.

The government has made it law that the credit report agencies need to give you a free report every few months. This not only allows you to stay on top of everything within your credit report but also give you a chance to dispute any changes to it in a timely manner. Just make sure you request it because it won't be automatically sent to you.

You need to make sure you don't use up all your credit all the time. This is because part of your credit score is dependent on your utilization rate, a measure of how much credit you have available versus how much you use.

When companies pull your credit report, that activity is recorded and affects your credit score. Therefore, it is advised not to apply for any other type of credit before you make a big loan. Especially many credit card applications in a short period of time. That's a huge red flag for credit companies. Don't do it.

Inactive cards will eventually be flagged by the credit card companies and be canceled. The credit report will just say canceled by card company without any explanation so use all your cards in regular intervals.

Remember to apply for a few credit cards and have some lines of credit available even if you don't need it. I used to only have one card and one day I was denied for my business credit card because they told me I only have 1 credit card and haven't shown that I can pay off debt, even though I have tons of cash in my bank account.

Different types of borrowing will help your credit scores because it shows that you have debt and are proven to be able to manage it. Without it, lenders really won't know how you will react when the big bills come due every month.

About the Author:

myFICO is a great credit monitoring service. Here are many myFICO coupon code for you.

Get all the information and photos:: http://mortgagewide.info/awesome-credit-is-the-most-important-measure/