Tips For Improving Your Credit Rating
Being able to have good credit rating is a big challenge to many people but, such score ensures you lots of things. The good thing is, there are many ways on how you can achieve this and this article will show you some simple yet effective tips to improve it.
Number 1. Be timely with your bills – actually, your payment history accounts for around 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. If you’ve been sitting on it, then it’s time for you to get up and find ways to settle them all.
Not only that, it’s pertinent to understand that the late accounts for more than 3 months are more likely to attract high 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 – it is a surefire way of improving your credit rating by having a couple of active credit cards. Say that you qualified as being a responsible card holder, then there’s no way that your credit score would be low. What it means to be responsible is that, you’re making payments on time. Say for example that you’re not qualified for traditional credit card, then you might like to try a secured one.
Number 3. Avoid creating plenty of new accounts – every single time you apply for a new credit card, the company will perform a hard check on your credit status. Opening lots of new accounts indicate that more checks have to be performed and if there are so many checks done, then definitely your credit score is going to suffer when you apply 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 – even though it is recommended to apply for a credit card to improve your credit rating and to lower its value, the better the score you will get. As a matter of fact, it’s fairly simple to calculate the usage. 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. Otherwise, you may want to limit the expenses you make on your credit cards or you may talk to your provider as well to be able to improve your credit rating.