7. Not Closing Any Accounts
Even if your continually revolving debts are paid off, don’t close the account completely. The longer an account stays open with no negative reports on it, the better it will reflect in your overall credit score. This happens because the creditors weigh in the averages in the formula of the credit score. Several credit experts will advise you to maintain a balance of 30% of your credit limit. Nonetheless, if you keep it at 70% you will still keep a credit score which is in good shape.
8. Not getting New Credit
You will have to stay away from getting any new credit unless it is an absolute necessity. Each time you apply for credit, an inquiry will be added to your report, and every inquiry that is made will drop your credit score. When you have fresh credit, there won’t be any track record on how you will manage your credit account. Why should you risk the drop? You mustn’t forget that your credit score is about assessing your risks.
You should try to get credit for your housing, transportation, college or continued education and 3-5 credit cards. That really should be all you need in any case unless you’re looking for extravagant spending. If you would like more credit, try to request an increase on your current cards rather than apply for a new one.
9. Mixing Types of Credit
If you show to your creditors that you can handle different kinds of credit at the same time, you will be rewarded with a great credit score. In order to do this, try to get installment loans for car, personal loan or mortgage. Try also to get revolving credit as well like credit cards: Visa, MasterCard, Gas cards, department stores, etc. Through mixing it up, you will be able to show that you can manage your credit because you will have short term and long term credit with a payment plan which is in place and fixed.
Always keep these accounts open with a balance of 70% or less and be make sure to pay them on time and you will watch your credit score fly.
10. Not Filing For Bankruptcy or Foreclosure
Here's a very obvious bit of advice: Don't file for bankruptcy or foreclosure if you can possibly avoid it. These reports will remain on your credit report for 10 years and will constantly decrease your credit score. If you would like to rebuild your credit history quickly after a bankruptcy or foreclosure, it is recommended that you use the Round Robin strategy that was mentioned above and get secured credit cards. Now you will be even able to get a car loan or mortgage straight away following the bankruptcy.
Interesting? more information on the next page, Secured Credit Cards