Keeping Credit Scores High Makes Good Sense

   

Posted: Jul 28, 2009

Repairing consumer credit is more important than ever, with many people finding it difficult to open new accounts.

With that in mind, an article in U.S. News and World Report offered some tips on how to rebuild a credit score.

Among the tips are for consumers to get their credit report and FICO score, especially if they're expecting to make a major purchase, such as a home, in the coming months. Another tip is for consumers to check their credit report for possible mistakes, and to pay off any unpaid debts that show up on the report.

The article notes that a debt in collections will stay on one's credit report for seven years, and goes on to emphasize the importance of establishing good credit habits, especially making all payments on time, in the future.

Generally, consumers can start rebuilding credit by keeping on top of all payments while paying down their balances on existing accounts. Credit scores also tend to be favorably influenced by keeping older accounts open, which highlights the importance of using care while transferring balances to new accounts.