Tips For Improving Your Credit Rating
Getting good credit rating has been a real challenge for many people however, such score guarantees you lots of things. The good news is that, there are numerous ways on how to achieve this and you are going to learn simple yet effective tips on how you can improve it in this article.
Number 1. Be timely with your bills – your payment history actually accounts for roughly 35 percent of your credit score. By just checking these figures, you really have to be sure that your bills are paid on due date in order to avoid losing valuable points. It’s time for you to get up and find ways on how to settle them all if you’ve been sitting on it.
Aside from that, it is essential that you have a good understanding that late accounts of more than 3 months are attracting the highest negative score. And for this, you may wish to start with the payments that are long overdue and hasten to complete the most recent ones and pay it in full.
Number 2. Commit yourself with credit card – with a couple of active credit cards, it is guaranteed to improve your credit rating. There is no way for your credit score to be low say that you have qualified as being a responsible card holder. Being responsible indicates that you are making payments right on time. You may try a secured one instead in the event that you don’t qualify for the traditional credit card.
Number 3. Avoid creating plenty of new accounts – every time that you apply for a new credit card, the company is going to perform a hard check on your credit status. As you open lots of new accounts, it also means that there are more checks that should be done and if there are, then it will probably make your credit score to suffer when applying for cards. This is due to the reason that doing these checks on your credit rating are associated with those who are so desperate in trying to get credit and it’s ideal to minimize them.
Number 4. Limit your rate of utilization – despite the fact that it’s recommended to apply for a credit card in improving your credit rating and to lower its value, the better the score you are going to get. Calculating the usage is fairly easy. All you need to do is to divide your credit balance into your credit limit and when you get 0 to 20 percent, you’re doing just fine. You may try to limit the expenses you’re making on your credit cards or you can talk to your provider too in order to improve your credit rating.
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