If you have a good credit rating it will give you more options in terms of borrowing power and lending opportunities which is why it is so important to do what you can to keep the number as high as possible.
You can find articles on ways to boost your credit score at mywealthandinvestment, in the meantime, here are some pointers on what steps to take to improve your credit rating almost straight away.
Check your report
A good starting point is to see what lenders know about you by taking a look at your credit file and learn a bit about how credit scores work.
You are able to download a free copy of your report through a credit score checker and it makes sense to see what information is on there and whether it is accurate or not.
If there are any errors you should arrange to get them corrected, especially if it is detrimental to your score, and target some areas where improvements could be made such as making sure you don’t get a late payment noted on your report.
Are you using too much credit?
One of the biggest aspects of your credit profile that can impact your score is how much of your available credit you are using.
If your card balances are near their limit and you have some loans too, even if you are up to date with payments, using too much of your available credit will bring your score down.
A good guide is to try and use less than 50% of your lines of credit. About a third of your credit score is related to your current indebtedness and paying down your balances will have an immediate impact on your score.
Ask for a bigger credit limit
It might seem crazy to suggest asking your credit card company for a higher limit having just suggested paying down your balances, however, if you don’t have the cash to do this it is a strategy that could improve your rating if you are disciplined enough.
The key is to get an increase so that you improve your credit utilization but don’t spend any of that available credit as that will only worsen the situation.
Don’t miss any payments
All lenders want to know that you are going to pay them back and make payments on time which is why they check your credit score to see how you perform with your current loans and credit cards.
If you manage your credit well and make payments on time it will build up a great credit history so resolve today to ensure that you are not late with any of your regular payments.
Avoid making too many applications
If you are looking for a new loan or card it is not a good idea to make multiple applications as this will show up on your credit file and could dent your chances of getting what you want.
See if you can check whether you will be accepted before you make a full application so that it doesn’t harm your score.
If you follow these suggestions it should help you to improve your credit score in no time at all.
I’m a 20-something stay-at-home mother and wife. I have an amazing husband, a beautiful daughter, two loving dogs, and a lazy cat. I wouldn’t change my life for anything! I love to read, listen to music, cook and blog!
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