9 STEPS GUIDELINE TO A SOUND CREDIT SCORE:

At times if your credit score is low you would be charged high interest, substantial down pay or collateral against it. The lenders charge high interest rate on a loan if you have a poor credit score because they lend you on high risk at this point of time.. Thereby to develop and maintain a sound credit score you may follow the 9 step guidelines

• Check your credit report regularly and rectify any error that would be reflected on your credit report.

• Avoid opening any new accounts within a short span of time

• Open some credit accounts shortly and check that the you are maintaining regular transaction and making payments regularly

• Pay your bills on time

• Keep your debts to a reasonable limit

• Do not opt for too many credit cards or make sure that you pay the credit every month.

• Avoid closing old paid –off accounts otherwise it reflects you to be less credit worthy.

• Abstain from too many inquiries that would be reflecting negative impression of your credit file.

• Avoid bankruptcy: Being declared as a bankrupt would cost you heavy and miserably affect your credit score.

To conclude, if you are careful in spending your penny you can easily develop a good credit score. A bad credit score is an indication of your unbalanced financial status. Besides, money being an integral part to dictate almost every movement in your day to day dealings it is important to maintain a sound credit score.