Get out of debt without lowering your Credit Score!
Published by admin on August 11, 2010
Get out of debt without lowering your Credit Score!
Many people have heard or read on the internet that in case they are going to use a debt consolidation program, their credit will be seriously hurt. In this short article we are going to present you with a couple of tips that can help you get out of debt without hurting your current credit score. To do this thing is not impossible, and the best way to do it is by knowing right from the start how the credit score is going to be calculated during the moments when you are trying to get out of debt. So here we are going to present you with 3 simple tips and tricks that could help you eliminate all the debt that you have without losing that valuable credit score that will get you more loans in the future for the things that you might need.
1. Make sure you always make the debt payments on time from now on. One of the best ways to preserve a good credit score is by making the payments on time. When you decide to get out of debt and you will start to concentrate more on the debt with a higher interest rate, you should never fall behind payments on the other debt you have. Not paying your debt in time is definitely going to hurt your credit score and since you don’t want that to happen.
2. Also in case you are thinking about getting a new card or line of credit in order to transfer the money over from a high interest rate credit card make sure that you don’t apply for it if you are not sure 100% you will get accepted. Every time you will apply for a new loan it’s going to go straight to your credit score record and in case you get declined your credit score is going to be once again hurt. So just make sure that you don’t apply for 5 low interest credit cards, just hoping that you will get accepted by one of them. This is definitely a mistake that you don’t want to make.
3. If you have started your get out of debt process and you have already managed to pay off some of your current credit cards in full, one of the things that you might think about is to cancel those accounts so that you will never again get into such a nasty debt situation. Think again, because by canceling your account might hurt your credit score. The credit score is going to be calculated by taking into consideration not only if you have made your payments on time, but also depending on the length of the time you have had a credit card. So we consider that it’s going to be better if you leave the account open after the balance is paid off completely since this is going to have a positive effect on your current credit score.
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