Repair Your Credit Rating!

What can you do to repair your credit rating?

Credit rating is a lender's estimate of the probability that you will default on a loan. Here are some tips how to repair your credit rating and keep it high.

• keep no more than 4-5 lines of credit opened - one car loan, student loan and couple credit cards are enough - too many open credit lines will hurt your rating
• the best way to repair your credit rating is to get depth on your credit accounts - have at least 2 opened for at least 2 years with $2,500 credit limit
• another good approach to repair your credit rating and raise score is to cut balances you carry on credit cards to just under 35% of your limit - with $2,500 credit limit don't carry more than $900
• don't open a department store card every time you are offered 10% off your purchase - those cards have a low credit limit and result in unnecessary credit inquiries
• make sure credit reporting agencies remove all duplicate accounts if you do student loan consolidation
• your credit rating will suffer if you are late on the payment - if you can't make payment on time, call the credit company and try to explain the situation, it may work few times
• don't apply for too many lines of credit at once - banks, card issuers, auto dealers will pile too many inquires
• keep all mortgage release letters - that is letter that your bank sends you after you refinance or sell your house - with recent refinancing wave, could be a chance that paid off mortgages still show up on credit report

All these things are important. Remember it is always harder to repair your credit rating once it tarnished than to simply keep your rating good.