5. Paying on Time

This one is kind of noticeable, but it can’t be emphasized any further. If you don’t pay in a timely way, your credit score will decrease. This will occur no matter how late your payment is. For some reason people still tend to think that if they are only a few weeks late, it still okay. Actually, for the loan company, if you pay late but consistently, they will make a lot more money with late fees and more interest. For you, this will imply a lower credit score. If you think in the long-term and in credit scores, you will understand what I mean.

6. Paying Down Your Debts

You mustn’t forget that you are dealing with high-level statistics and probabilities which will evaluate and forecast trends in your paying attitude. You can never entirely pay off your revolving debt. So think about it. Your credit score will be a reflection of your ability to manage your credit. If you pay off your debt you might not necessarily be managing it.

If you maintain a balance of nothing, then you will have nothing to manage, and it will no longer exist. Obviously, you cannot manage what isn’t there. Therefore, when you are thinking in terms of credit score, you have demonstrated your ability to pay off accounts swiftly so that you can avoid to have to manage them.

Don’t misunderstand; if you over extend to begin with, you will want to pay off what's necessary to make your credit profile look good. Then you will need to manage the remaining credit. That is how you can make your credit score decrease. Creditors want to know that you are able to manage your credit account so you need to have a balance in order to do that.

Keep reading for some more tips on how to recover from any bankruptcy situation, go to our next page: Bankruptcy Advantages 5