5 Steps To Better Credit

At Peak Credit Solutions, Inc., one of our main goals is to help educate consumers on credit practices and how best to manage their credit portfolio. Here are some common mistakes that we see all too often. If the average consumer can follow these basic points, their credit score will be healthy.

View your credit report on a regular basis. Peak Credit Solutions always recommends that our clients obtain a copy of their credit report every 6 months. This allows you to monitor your credit and make sure there is not any inaccurate information on your report. Also, with identity theft at an all time high, it is wise to make sure someone has not high jacked your personal information.
Set up all your payments on auto-pay from your bank account so that you make all your payments on time. 35% of how you are scored through FICO is based on your payment history and if you pay on time. Make sure to pay at least the minimum payments and have the payment sent with a couple day buffer before the due date.
Do not carry a balance of more than 30% of your available revolving credit, (credit cards) and do not carry more than 30% on any one card. This point is a major piece of how you are scored every month. The graph in this email demonstrates a client who paid down several high balances and the 60 point increase he received for doing so.
· Use it or lose it! Today credit card companies are closing accounts if you are not a profitable client to them. In other words, if you pay your full amount each month, you are not making any money for them and they may close the account. So, in this environment, it may be smart to use each of your cards periodically and carry a small balance. Never close accounts if possible! It's OK to leave an account open and "hide" the credit card if you don't want to use it. When you close accounts, you decrease the amount of credit available to you and this negatively impacts the debt utilization ratio. You also could take away some excellent credit history if the account has been open for many years. Lenders and FICO like to see long credit history.

Never close accounts if possible! It's OK to leave an account open and "hide" the credit card if you don't want to use it. When you close accounts, you decrease the amount of credit available to you and this negatively impacts the debt utilization ratio. You also could take away some excellent credit history if the account has been open for many years. Lenders and FICO like to see a long credit history.
Feel free to contact Peak Credit Solutions for all your credit scoring and building needs. We are more than happy to review your credit report and advise on how we can improve your score in the shortest period of time. Credit reviews are always

Thank you,

Information provided by Sean Clemens
sclemens@peakcreditsolutions.com