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How to keep your bad credit score from going lower
It seems once you begin that downward spiral with your credit score, it’s hard to stop. And we all know the key to a really good home loan interest rate is a good solid credit score. So what can you do if your score is dropping?
First it is important to understand why your score is dropping. Most people think that your score will remain high and go higher as long as you never miss any payments. One thing people don’t know about their credit score is that if you charge a lot of money on your credit cards, and you only payment the minimum payments then your credit score might suffer. He credit agencies do not like it when you carry a high balance on your credit cards.
When you figure out why your score is dropping then make a plan to stop it. Most people just think of a short term solution that may work for a few months and then they just slip right back in to that downward spiral. You need to make a long term plan to prevent a serious decline in your credit score. Maybe redo your monthly budget to lower what your spending. Sell one of the cars you have to reduce your monthly expenses. Cut back on the dinners out. There are lots of things people can do to save their credit score. The key is to make a plan and stick to it. The better you do the better your credit score will be. And the better your credit score the better the home loan interest rate you will get.
Kevin O’Connor
Mortgage Consultant
www.koloans.com
800.550.5538
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