How to Protect Your Credit Rating

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How to Protect Your Credit Rating

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In today’s age, an individual’s credit rating says a lot about them. People look at your credit scores when determining eligibility for lots of things, including car loans, home mortgages, employment opportunities, and more. Thus, protecting your credit, and working to improve your score, is a worthwhile endeavor. Since there are many different factors that go into calculating your rating, taking personal responsibility for your actions, and being proactive about potential disputes or errors, is wise.

If you want to know the basics of how to get a good credit rating, and how to keep it that way, here are some tips for you to consider:

  1. Always pay on time, or early

Your payment history is one of the main things that lenders look at. Are your payments on time, and in the full amount? Set reminders for yourself, or set up automatic bill pay, so you never miss a due date.

  1. Catch reporting errors

Many people have incorrect information on their credit reports, but some of them don’t even know it! Make sure you check your credit report on a regular basis, and address any errors you notice, before potential problems arise.

  1. Seek credit wisely

One of the main problems that people get in to, is taking out too many lines of credit, for unspecified needs. There are always risks and high interest rates to consider here, so only seek credit when it makes sense, like for a car, a home, your education, or medical expenses.

  1. Safeguard your sensitive information

Too often, people give out their personal details to unsecure sources, and compromise their credit ratings. Be protective of your financial information, and only give it to trusted sources and use it on secure websites. Check your statements regularly for signs of fraud.

  1. Don’t rely on credit for everything

When times are tough, many people turn to their credit cards to pay for everyday expenses, but this is a dangerous game. This is a sign that you are not able to actually afford your lifestyle, and your credit should never be used to make ends meet. You may end up with maxed out cards, and could potentially need bankruptcy to set yourself free again.

  1. Hire a consumer rights attorney

There are situations that we simply cannot handle ourselves, as consumers, like credit report disputes and debt collection harassment. Reach out to a qualified consumer rights attorney in Los Angeles and address these issues right away, before they get out of hand.

 

Need help protecting your credit? Get in touch with us at Martin & Bontrager today and ask for your free consultation!