Good Credit Habits Can Keep You Out of Trouble

By Tony Banks

The credit system is a good one no doubt. But as most things in life, it has its other side too. Recently, creditors started slashing consumers' limits. The consequence of this action is that it lowered the debt-to-credit ratio of many of them. Just imagine this scenario: Your limit is $9000 and for no apparent reason your creditor slashes this limit to $6000. With this reduction your debt ratio will consequently increase by an average of 30%. So if you had a debt ratio of 20% initially, it will now be 50% as a result of the credit limit slash.


The good news here is that you can still overcome the odds of having your limit slashed and still maintain a good balance. There are two ways to do this. It is either you make drastic reductions in your monthly spending or you make a plea with your creditor to restore your limit to its original state.

Bear in mind that a clean report is built by years of good history, regular debt payment and reduced spending. These are strategies you need to deploy in your race for a healthy profile if you must survive in the current financial world. However, the prospects of attaining scores above 800 are worth getting a make-over kit for repairing your credit report. This method will require from a few weeks to several months of work that will improve your rating significantly if you handle it properly.

Alternatively, looking up the directory of credit repair agencies in search for a repair agency that will handle restoration of your profile is another positive step to help you stay out of financial trouble. Good luck!

Visit do-it-yourself-credit repair or credit repair services to learn more on raising your credit score 200+ points to get approved for car, home and credit card loans.

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