Credit Score Tips

Tip #56: Don’t change jobs frequently.

Of course, there will be times when you will have to change jobs. However, avoiding changing jobs unnecessarily will help improve your credit score by allowing you to stay in one place and build a steady financial situation.

Your credit report also shows your current and past jobs - if a lender sees that you change jobs frequently, he or she may wonder whether you have the life stability required to handle debt responsibilities. Also, the lender cannot see why you left a job. If there are many employers listed on your credit report, the lender may wonder whether you have not been fired from jobs and whether that is an indication that you will be unable to pay your debts due to unemployment at some point in the future.

A lender makes their money by the interest charged on a loan. If you default on a loan, you cause the lender to lose money. Above all, the lender wants to see evidence in your credit record that you have the traits that will make you repay the loan - with interest.

Frequent job changes may indicate - to some lenders - that you will simply disappear with the money or default on a loan. Having a stable life - including a longer-term job and one place of residence - may indicate to lenders, on the other hand, that you are building up roots in a place and so will be unlikely to move and default.

Tip #57: Avoid changing switching credit companies and credit accounts a lot.

Credit companies will often offer you special introductory rates, generous free gifts or other incentives to switch companies. However, you should resist the temptation unless you have a reasonable reason to switch. Establishing a good credit relationship with one company - having one credit card from your college days, for example - is a good way to show lenders that you are a steady sort of person who is likely to take money matters seriously. That is exactly what lenders want to see. Switching accounts and lenders makes you appear fickle and less than reliable.

Tip #58: Keep your records up to date.

Not knowing what is going on in your own financial life is courting disaster. Keep one file folder in your home which contains your financial information - and review this periodically. If something changes in your life - you get married, you start a family, you move or change jobs, look through your financial folder and contact everyone who needs to be contacted to update them on the change. This will help make sure that all your creditors have the information they need about you. Keeping your own records up to date will help you make sure that everyone who handles your finances is also up-to-date.

Tip #59: Always be sure that your creditors know your current address.

If you move and forget to inform all your creditors of your new address, you may not get all your bills, making you look like a deadbeat debtor and making your credit score plummet. Make sure that you either close your credit accounts or get your new address and contact information to your creditors.

When you move, make sure that you inform credit card companies, stores you have credit cards with, banks, credit unions, and anyone else you do financial business with. Better yet, also arrange with the post office to have your mail automatically forwarded to you at your new address. This will ensure that any creditors you may have overlooked will still be able to contact you - and you will have a second chance to remind them of your address change.

Tip #60: Talk to lenders and creditors.

Many people are hesitant to keep an open line of communication with their lenders because they are embarrassed about their financial state or because they feel unsure about the position.

Lenders can’t read your mind, though. They do not know that you can’t make a payment this month but will be able to make a double payment next month because of a banking error. They simply see that you have failed to make a payment - this may indicate a temporary problem or a decision on your part to default on your loan.

Without your input, your creditors have no way of knowing, and since their profits and money are at risk, they tend to take the more conservative view and even assume the worst. Keeping the lines of communication open as soon as a problem develops can help reassure your lenders and can help your creditors see that you are responsible with their money.

Talking to lenders as soon as a problem develops can be an effective way to prevent a ding on your credit score that can affect your credit score. For example, if you are giving trouble paying your bills, you can often work out a more reasonable payment schedule.

In most cases, you will not get a ding on your credit record if you do this because the lender will have some assurance that your financial obligations will still be met. In fact, one of the things that most credit repair companies do is to arrange for more reasonable payment schedules. With a simple phone call, you can do this for yourself for no charge.

Lenders want, above all, to be repaid so that their interest rates can earn them a profit. By communicating whenever there is a problem and showing that you are willing to work hard to meet your responsibilities, you show your creditors that they will get their money and this makes lenders more willing to work with you to ensure that your credit rating is not badly affected by one missed or late payment. Speaking with your creditors can help establish a good working relationship that can help keep your credit rating in good shape.

Tip #61: Get lenders to waive late fees and charges.

If you have missed some payments or made some late payments, lenders will often charge you a fee for non-payment. This not only adds insult to injury - you have to pay more on your bills and get a ding on your credit - but also makes bills more difficult to repay since the bills are now higher. You can phone the lender and get the charge waived in most cases, though. This is a secret that credit repair companies have long known and is one of the first services they will perform on your behalf. You can easily accomplish this for yourself, however, at no cost.

Lenders want to get paid, and if they think that you will pay your bill more quickly by waiving the late fee, they will most often gladly remove the fee in exchange for prompt payment.

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