You would not think it is possible to protect your credit when significant debt, but there are actually ways to minimize the damage. But to understand how to protect your credit when the debt, you must first understand how your credit is damaged.
Damage to the Marks
The quickest way bruised or damaged credit can not pay their debts. Even a payment can not cause a sharp drop in your credit score. The results of several late payments in your account is marked as criminals, which is reported immediately to your credit report. Even an account of ex-offenders, which has already been resolved can pursue his claim in the coming years.
Another way credit is damaged, often keeping large balances on your accounts. Creditors look at the amount of debt to credit limit on your account. If your balance absorbs more than 80 percent of your total available credit limit, your credit score take a hit. In addition, having too many open and active lines of credit get your credit rating to be spotted quickly. Similarly, for further studies of your credit history is also shown negative on your credit report. If there are too many creditors are studying your credit report to evaluate your potential as a borrower, your credit suffer the consequences.
Many people assume that their credit score is affected by factors beyond their control. The truth is that everyone has a nearly 100 percent control over their solvency. All the above factors can be avoided or resolved as you take the necessary measures.
First, pay your bills on time, every time. Many creditors are strict with their dates, and be as much as 1 to 2 days late on a payment account can end up pushing you into a state of crime. If you are worried about your payment may be late, electronic payment at least 10 days before the due date or electronic payments online or by phone. If you are experiencing financial difficulties, contact your creditors before you miss a payment and negotiate an arrangement that suits your budget.
Second, keep your balances below 80 percent of your total credit limit and not exceed more than 2 cards per person. This will ensure your debt to income ratio is less than the amount of concern among creditors. Always keep at least one card open and active with a zero balance, which shows your creditors ability to maintain a credit account charge.
Finally, make sure that no information about your credit without your consent. Restricting the number of people who will investigate your permanent credit for six months. Be sure to check your credit report often to control any questions or unauthorized changes to your credit report. Always dispute inaccurate information promptly. This is especially true of someone who recently declared bankruptcy. Monitoring an after bankruptcy credit report to make sure you back on your feet as quickly as possible.