How To Keep A Great Credit Score In Today's Recession

Everything in our society today seems to be riding on the economy. With the economic crisis now upon us, it is more important than ever to establish good credit and keep that credit rating as high as possible. It can be done by using some simple guidelines.

Credit ratings range from 350 to over 800, with the higher the score the better. You can actually boost your credit score and at the same time lower your interest for, let's say, a new mortgage. An example would be as follows: if your credit score is 700 you may get a mortgage offer with an interest rate of 7%. Raising your credit score can lower your interest rate offer to 6% which can save you thousands of dollars.

However, there are many people who have no idea what their credit score is at the present time. The first thing individuals should do is to check their credit reports to eliminate any possible errors. There may be outdated information on your report that is hurting your rating. Believe it or not, many errors have been reported on credit reports such as a "Jr." being mistaken for a "Sr." Sometimes credit reports carry false information such as an account that has been "paid off" being reported as " account owed." These can certainly lower your credit rating is the reporting is unfavorable.

It is also important to always pay your bills on time. No one wants a late fee, and in today's economy we cannot stress enough the importance of not only good credit, but outstanding credit. Creditors look favorably on consumers who wisely pay their debts each month, versus consumers who have an abundance of late charges attached to their statements. And keep in mind that when paying your accounts monthly, it is always wise to keep accounts that have been "paid off" as open accounts. You can always charge a tank of gas and pay it off the next month to keep the account current. Keeping old accounts open helps your credit score because the longer you have credit with a particular company, the greater your score.

Contrary to popular belief, no activity on accounts can lower your score instead of improving it. Keeping good credit in the midst of an economic storm can be a challenging task, but it is certainly a task that we can all endeavor to aim towards. We can get through this economic crisis and come out on top if we use our heads instead of our emotions when dealing with buying and selling. Buy smart and think smart and use your credit, but use it with caution.