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 – your payment history actually accounts for roughly 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’ve been sitting on it, then it’s time for you to get up and find ways to settle them all.
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. You might want to start with payments that are long overdue and hasten to complete the most recent ones and pay it in full for this.
Number 2. Commit yourself with credit card – having a couple of active credit cards is a surefire way to improve your credit rating. 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. In the event that you don’t qualify for the traditional credit card, you may try a secured one instead.
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 – 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, try talking to your provider or limit your expenses on your credit cards to improve your improve your credit rating.