Credit and debt are among some of the most complicated financial topics to grasp, which is often why so many individuals find themselves facing massive debt and other major financial troubles. A good way to help protect your financial future is to educate yourself on common credit topics. Read over these answers to common questions about credit to boost your knowledge.
How Many Credit Cards Should You Have?
While there is no perfect number, most individuals benefit from having two credit cards —one that offers a low-rate when you must carry a balance, and one that offers a grace period. However, it is recommended that you carry at least four different lines of credit to help boost your overall rating, such as a major credit card, retail card, car loan, and home loan.
Does Checking Your Credit Rating Hurt Your Score?
Checking your credit rating does not affect your score if you utilize a “soft inquiry” rather than request it directly from your lender. By requesting your score from a service that provides reports directly to consumers for a fee, these inquiries will show up on your credit report, but will not deduct any points from your overall score.
How Can You Repair Your Credit Rating?
There are a number of ways to improve your credit rating. This includes reviewing your credit report for discrepancies or errors, obtaining a secured credit card, and paying all of your bills on time each month. It is also important that you pay the maximum balance on all of your credit cards on a monthly basis rather than just the minimum balance to avoid compounding interest.
With years of experience, the bankruptcy attorneys with the Burr Law Office are here to help you with your financial struggles. To learn more about our debt relief services or Milwaukee Chapter 13 bankruptcy, contact our bankruptcy law office at (877) 891-1638 today!