5 Lessons Learned: Scores

Improve 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. As you read this article, there are many different ways on how you could achieve this which is what you will learn in the next lines.

Number 1. Be timely with your bills – as a matter of fact, your payment history accounts 35 percent of your credit score. And by just looking at these figures, it only shows that you must need to ensure that your bills are paid on time 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. For this reason, you may like to start with 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. 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. 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 also mean that more checks should be performed and if there are many checks to be done, then your credit score will definitely 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 – and even if it is wise to apply for a credit card in improving your credit rating and to lower its value, the better the score you will likely 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.