Improving your credit as much as possible is an important part of effective financial management. Your credit score has an influence on many different areas of your life, including housing, employment, and the ability to get credit in the future. Fortunately, there are a number of small tasks that you can do on a regular basis that will help you improve your credit and keep your credit score high. Here are some of the simple tasks that I use to keep my credit score high and keep from having negative information reported about me.
Track Your Financial Transactions
To keep your credit score high, you have to be on top of your finances. Overdrawing an account or not having enough money to pay your bills can have dire credit consequences. Fortunately, keeping track of your finances has become much easier with the creation of numerous software programs and smartphone apps that allow you to view your full financial picture at a glance. I particularly like Mint.com, which allows you to input information about your financial accounts and see your spending and saving trends virtually in real time.
Review And Pay Credit Card Statements Immediately
Many people make the mistake of tossing their credit card statement aside for later viewing instead of immediately opening it and paying it once it has arrived. Reviewing your credit card statement for mistakes and unauthorized purchases is very important, as the quicker these transactions are identified, the easier they are to correct. You should also pay your credit card payment as soon as you receive the statement to ensure that the payment is made before the due date. Having late or missed credit card payments on your credit report can be devastating to your credit score.
Examine Your Credit Report
It is also important to examine your credit reports regularly to see the information that companies are reporting about you. The information in your credit reports is used in the calculation of your credit score and negative credit report information can cause a considerable drop in your credit score. Free copies of your credit reports from the three main credit bureaus are available for free once per year at www.annualcreditreport.com. Any information found that is inaccurate or indicates fraud has occurred can be disputed with the credit bureau and will be removed from your credit report if its is found that you are correct about the information.