Getting To The Point – Credit

How To Boost 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 – as a matter of fact, your payment history accounts 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 don’t do anything about it, then now’s the time to get up and search for ways on how to settle them.

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 – it is a surefire way of improving your credit rating by having a couple of active credit cards. Say for example that you have qualified as being a responsible card holder, then there is no way for your credit score to be low. Being responsible indicates that you are making payments right 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. 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 – 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. It’s fairly easy to calculate the usage. Simply divide your credit balance into your credit limit and you’re fine so long as you are in range of 0 to 20 percent. 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.