Credit cards can be the most deciding factor in what your credit rating is. For many of us, this is the reason we may have poor scores. This is why; we all need to pay special attention in regards to the facts that surround credit cards and how they are used. Here are a few facts we all need to know:
Every time we fill out an application to take out a credit card or a department store credit card it impacts our credit. In fact, experts say it can affect our credit as much as five points. If you continue to fill out credit applications throughout the year, this can wreak havoc on your credit rating.
No, your credit card account will not actually be open until you call that activation number that is usually located on a sticker that comes attached to your new credit card. Once you call in to activate the card it is now open and ready for you to use.
Yes, paying your credit card payments on time is one definite way to ensure that your credit rating remains at a good rate. Yet, this doesn’t mean that you shouldn’t be checking your credit reports regularly. On average, there is about an 80% chance that there is at least one error in your report. This is why you need to check these regularly to make sure that no errors are causing your credit rating to be lower than it actually is. You can check your credit report for free at annualcreditreport.com.
You can also boost your credit rating my overpaying your payments as often as you can. However, as you are overpaying one payment, don’t neglect to pay the others as you should.
Never close your credit cards after you pay off the balances. Instead, keep the cards open and try to refrain from using them except once or twice a year to keep them active. This will help raise your credit rating. If you close the accounts, this will impact your credit negatively.
Knowing the facts about your credit cards and how to properly make your payments is the best way to build a good credit rating.