Steps To Financial Freedom: Credit Cards By Credit Score

The best place to begin, when it comes to repairing your personal finances, is with your credit. If you don't tend to it, poor credit can wreak havoc on your financial future. This article shows you the best way to care for your credit cards by credit score.

The three credit bureaus keep scores on each of us. When you go and apply for a loan, the credit bureaus send your information to the potential lender, and the lender uses that data to figure out whether or not you are a risk worth taking. If your scores are higher, you have much more access to financing, should you want to buy a new car, or a new house, or even get student loans. Maintaining a high credit score gives you many more options in life, so make sure that you monitor your scores on a regular basis.

The best way to manage your debt is to stay out of it. Unless you have a house or a car note, there really is no reason to have long-term debt. The wisest way to keep a high credit score is to keep lines of credit open but either never to use them or to pay your use off each month. This helps keep your credit score high, and it also gives you the financial flexibility to manage crises without having to borrow. Having your own personal savings is a very rewarding feeling.

Because there are three different credit bureaus, it is important to monitor all of them. Sometimes creditors only communicate with one or two bureaus, and the third one does not know that you have paid your bills on time. As a result, the score from that bureau can be significantly lower. By staying on top of all three credit scores, you ensure that all of your information is correct, and you avoid unpleasant surprises when you go to apply for that new car loan.

The credit bureaus have a lot of information to deal with -- and a lot of people to keep up with. The possibility of a mistake on your report is a real one. If you find a mistake, the first step is to challenge the disputed entry or entries on your report with the bureau.

There is an online process to do this the first time, and you have to wait up to 30 days to get a full response. If you do not get the answer you want after that first review, it is important to contact a representative of both the bureau and the creditor personally to make sure that your information is corrected.

You are your own best advocate, so if you see an error and that first request does not resolve the error, part of the next step is getting in touch with your creditor directly. Hearing from you motivates the creditor to expedite the review. There are quite a few pluses to resolving issues with your personal credit. Use these tips to control your financial situation.