Personal Credit is built by showing trustworthiness when it comes to paying your bills on time.
Your credit score is a measure of factors that may affect your ability to repay credit. It's a complex formula that takes into account how you've repaid previous loans, any outstanding debt, and your current salary.
WHAT CAN YOU CONTROL
LEARN ABOUT YOUR PROSPECTIVE CREDITOR BEFORE APPLYING. EACH INQUIRY SHOULD LEAD TO AN OPEN ACCOUNT. BEFORE YOU APPLY-RESEARCH WHICH BUREAU WILL BE PULLED AND VERIFY YOUR SCORE WITH THAT BUREAU FIRST.
START TO USE YOUR PAYMENT HISTORY AS A TOOL TO INCREASE YOUR SCORE. BY ALL MEANS BE SURE TO MAKE YOUR PAYMENT NO LATER THAN ITS DUE DATE. KEEP IN MIND, YOUR PAYMENT WILL BE AVAILABLE AGAIN ONCE YOUR PAYMENT CLEARS.
YOUR CREDIT GOES HAND IN HAND WITH YOUR PAYMENT HISTORY. SO LONG AS YOU MAKE A QUALITY PAYMENT ON TIME. A QUALITY PAYMENT IS ONE THAT BRINGS YOUR BALANCE UNDER 20% OF UTILIZATION. KEEP IN MIND YOUR CREDIT WILL BE AVAILABLE AGAIN ONCE YOUR PAYMENT CLEARS
DO NOT PAY CLOSED COLLECTION ACCOUNTS
According to Equifax, One of our Major credit reporting agency, a debt in collection won’t be removed from your credit report until six years after your last payment date.
Collection accounts significantly hurt your credit score and will do so for several years whether you pay them or not.
Eliminate negative items in your credit report. Negative information includes items such as late payments on loans and credit cards, delinquent accounts, charge-offs, accounts that have been sent to collection, bankruptcies, short sales, deeds in lieu of foreclosure, and foreclosures.
Generally speaking, negative information such as late or missed payments, accounts that have been sent to collection agencies, accounts not being paid as agreed, or bankruptcies stays on credit reports for approximately seven years.