Using the 20 Percent Principle to Add More Points to Your Credit Score

What you will learn in this article is a simple method you can apply to increase your current score. You've got 650 on your report. So what? Even people with 720 still find it useful and know the benefits of putting extra points to get them to 790.

Using the 20 percent rule, what you will be doing is to keep the expenses on your credit cards to a possible minimum. Note the words I used there "possible minimum". The reason is because hundreds of people are using that principle and it sure works for them.

Delta Credit Card

Even though a creditor gives you a maximum spending limit of (for the purpose of understanding this article) , 000, that doesn't mean that you should spend , 000 or , 000. Oh, you're going to pay back? Well, that is understandable but also keep in mind that the closer you are to this limit, the more points are take away from you.

The kind of credit-card lifestyle you should be living should built on the 20 percent principle whereby you do not spend more than 20 percent of the total limit allowed you on your plastic-money-holder.

The more you keep your expenses to a 20 percent minimum, the better for you as it will be counted for you as financial righteousness.

Another strategy to build more figures on your file is to sign-up as an additional cardholder on a close relative, spouse or associate's card. Before you use this method, however, first establish that the person whom you will be jumping on his boat has got a pretty good financial record too, or else you will be putting yourself in more danger if such person has got a bad spending habit on his card.

Using the 20 Percent Principle to Add More Points to Your Credit Score

Ways to Protect Your Credit

The best and most efficient way to protect your credit is to take an active role in maintaining responsibility for it-spend and make payments wisely, and never compromise your security or your identity.

Minimizing the Risk of Fraud

Delta Credit Card

Credit Card Fraud is a crime which occurs when someone obtains key pieces of information such as your Mother's maiden name, Social Security number, your credit card number, or some other tidbit of personal information and uses them for his or her own gain.

Victims of fraud are usually unaware of what has happened until they notice something isn't right: they may receive bills for unknown credit cards opened in their name, their credit report might list unknown debts, etc.

All victims are left with the complicated task of restoring their credit as well as rebuilding their reputation.

Preventing Theft: Guard your mail from theft. The easiest way for a thief to steal personal information is by stealing mail. Never leave mail unattended or unsecured in a mailbox and always shred discarded mail that contains personal information. Pay attention to your billing cycles. Follow up with creditors if your bills don't arrive on time, sometimes using paperless billing is advised as to avoid any useless paper in the mail. This also prevents thieves from stealing billing information. Secure Online Purchases. Always look for clues such as a lock and key at the bottom of the browser, and make sure the URL is an official domain name and not a phishing website (a website that emulates a webpage, such as a banks, in order to divert personal information to the thief). Be cautious when giving out your credit card number, address, or other personal information. Always make sure that when you are sharing personal information that the business is a reputable and honest firm. Protect your personal information in your home. Rid of, or tear and shred documents such as charge receipts, credit card offers, doctor's statements, discarded bank checks and statements, expired credit cards, insurance forms, etc. If needed, invest in a lockbox or secure cabinets to store personal files.  Never carry your Social Security card. Period. Leave it in a safe place at home.  Put passwords on your credit card, bank and phone accounts. As many times as possible. Avoid using your card as ID. Only use your credit card as second form of an ID if it's for a recognized and reputable merchant. Thieves can use this information to assume your identity and open bank accounts, make purchases, obtain cash, and even get a job or apartment. Your normal ID card should usually be sufficient.

Ways to Protect Your Credit