Ways & How

how to improve your credit score

how to improve your credit score

Your credit score, as reflected in your credit report usually obtained from the credit bureaus, represents your level of creditworthiness. In case the contents of your credit report are unappealing, it becomes imperative that you start learning how to improve your credit score. The banking industry together with the credit card firms have this practice of evaluating a client’s credit score in order to foresee associated risks before they lend out any money. This act of evaluation is reasonable enough in mitigating undue losses on their part on account of bad debts. Your credit score can either make you or break you. Certainly, it can affect your financial ability to secure an insurance policy and get the bank’s approval by the time you apply for a loan. A bad credit rating can actually hinder your dream of acquiring a house or a car. In case your credit rating is not that good, there are still remedies available for you so you can significantly increase it.

  1. Know the contents of your entire credit report. Secure a complete copy of your credit report, either online or from the credit bureaus, to guide you accordingly.

    ccessing your credit report is usually offered free of charge by certain online services. The only requirement is to key in the numbers of your credit card.

    In case you have an existing membership or anything to which you are about to join during the trial period, it is suggested that you eventually cancel the same. Along with it, ascertain that no one else is illegally making use of your credit. If this is the case, then a suit for identity theft is highly in order.

  2. Pay your monetary obligations on or before the due date. After a careful review of your credit report, you can now decide on how to address it. Know that the biggest part of your credit rating pertains to your performance on your credit card; hence, you can initially start by paying any dues thereon. In as much as you can, give your best to make your balance at least 30 percent lower than the limit imposed on you.

    While paying all other loans is a good idea, it is still recommended that you address your credit card first. The very basic key point here is to attend to your bills on time -- or better yet, much ahead of time. Delayed payments, even just for a month, can greatly affect your credit rating. Also, covering up any delayed bill is more expensive than paying on time because of the resultant penalty fee and other charges of similar importance.

  3. Make sure you cut off any idle credit card account. It may be that you have another account but you are no longer using it. Even if you no longer have any pending obligation thereon, you still have to close it formally so that it will no longer appear as “Active” in your report. Having various active accounts will not do any good for the status of your credit rating.

  4. Seriously contest missed payments. Your petition must include older claims as well. This item would not take much of your time because you can do this online. Any missed payment or previous claim has a corresponding negative mark on your credit record.

    Because the credit bureaus are bound to study a given payment or claim, it will eventually advise the concerned company to file a reply within a specific time. In the event that the company deliberately failed in filing its reply, the negative mark in your credit report will be eliminated accordingly.

Improving the status of your credit rating cannot be accomplished within a day, but a bad credit rating is not something that should lead to stressful nights. As long as you know how to improve your credit score, and you choose to make good on your credit preferences, you can be more than assured that you will be successful in creating an outstanding credit rating for yourself.


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