3 Easy Ways To Protect Your Credit Score

Congratulations! You have good credit, now what? Guard it with your financial life. I’ve devoted the last 4 years helping individuals improve their credit, and it took me all this time to realize that many people I have helped are still living and financing as if they have poor credit. So here are 3 simple things you can do right now to help keep your good credit rating.

1. Avoid shopping at rent to own places.

Rent to own companies love to promote how they help their customers build credit. These businesses charge way higher than the product is worth, causing their customers to lose a lot of money. It adds another account to your credit report that can reflect positive payment history, but is this really the best to manage your credit? You should either save your money and purchase the product outright, use your existing credit card and pay it off as quick as possible or get a department store card from somewhere that offers 0% financing that you will use again and again to build credit and avoid the risk of the account being closed because of inactivity.

2. Only Apply For Credit When You Need It.

Each time you apply for credit, it decreases your credit score. Protecting your credit score takes strategic planning so only apply for accounts that will benefit you and that you will use. Your credit is essential and should only be used when you need it. We suggest avoiding department store cards unless you will use the card several times and they can offer you 0% financing repeatedly on original purchases.

3. Don’t Let Car Dealerships Run Your Credit.

Car dealerships are notorious for putting multiple inquiries on your credit report. Instead, get pre-approved at your lending institution (Bank or Credit Union) before going to the car dealership. Let the salesperson know you are pre-approved and don’t have any interest in having your credit ran. Make sure you don’t sign or write your social security number down on anything as they will run your credit if you do. Only negotiate the overall price and not the monthly amount. 

May 1, 2020

3 Easy Ways To Protect Your Credit Score

Congratulations! You have good credit, now what? Guard it with your financial life. I’ve devoted the last 4 years helping individuals improve their credit, and it took me all this time to realize that many people I have helped are still living and financing as if they have poor credit. So here are 3 simple things you can do right now to help keep your good credit rating.

1. Avoid shopping at rent to own places.

Rent to own companies love to promote how they help their customers build credit. These businesses charge way higher than the product is worth, causing their customers to lose a lot of money. It adds another account to your credit report that can reflect positive payment history, but is this really the best to manage your credit? You should either save your money and purchase the product outright, use your existing credit card and pay it off as quick as possible or get a department store card from somewhere that offers 0% financing that you will use again and again to build credit and avoid the risk of the account being closed because of inactivity.

2. Only Apply For Credit When You Need It.

Each time you apply for credit, it decreases your credit score. Protecting your credit score takes strategic planning so only apply for accounts that will benefit you and that you will use. Your credit is essential and should only be used when you need it. We suggest avoiding department store cards unless you will use the card several times and they can offer you 0% financing repeatedly on original purchases.

3. Don’t Let Car Dealerships Run Your Credit.

Car dealerships are notorious for putting multiple inquiries on your credit report. Instead, get pre-approved at your lending institution (Bank or Credit Union) before going to the car dealership. Let the salesperson know you are pre-approved and don’t have any interest in having your credit ran. Make sure you don’t sign or write your social security number down on anything as they will run your credit if you do. Only negotiate the overall price and not the monthly amount.