Credit Score: How to Improve it

A good credit rating is very important for you because it helps you to get loans and other credit cards with a low rate of interest. Without a good credit score, you will have to resort to going to payday lenders to get payday loans. Given below are some methods to help increase your own credit rating.

Firstly, know your present credit score. You can get it online from sites such as TransUnion or Equifax, where you have to pay a small amount for the information. However, you can also compute your rating yourself and this facility is free of charge. Read your credit score report carefully and search for mistakes, if any. Mistakes in this report is not at all uncommon and when you get any in your own report, approach the authorities and get those corrected.

If you possess many credit cards, start by paying off completely the card with the least balance amount. In this way, the number of debts reduces and you get encouraged to clear off the balance debts gradually. Reduce your unnecessary expenditures drastically. Get rid of all the cards where you have completed your payment and keep only one card for emergency cases.

Do not apply for fresh credit cards immediately. Low credit scores entitle you to only the higher interest cards. Moreover, when you apply and get rejected, your credit score might drop even further. Always make the payments regularly because your payment patterns, known as “trade lines”, help keep your credit score as high as possible. Follow these methods and they will take your credit score within the acceptable credit range.

Posted in: Loans, Saving Money

One comment

  1. Bobby Marci says:

    Lenders, such as banks and credit card companies, use credit scores to evaluate the potential risk posed by lending money to consumers and to mitigate losses due to bad debt. Lenders use credit scores to determine who qualifies for a loan, at what interest rate, and what credit limits. Lenders also use credit scores to determine which customers are likely to bring in the most revenue. The use of credit or identity scoring prior to authorizing access or granting credit is an implementation of a trusted system.-“

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