HOW TO IMPROVE YOUR CREDIT SCORES.
A good credit score is important as it not only determines how easily you get credit but also have an impact on the interest rate you will be charged. The following ways can help one improve his/her credit scores.
Checking credit report carefully and always.
Always get your credit report and check for errors. Some lenders can be slow in informing the credit agencies when debt has been paid. It is therefore important to occasionally check the report to ensure accuracy. This is also necessary as it could help to detect credit fraud in case someone has been using your details to get credit.
Own a credit card.
A credit card is important as it helps create a credit history for you hence increases your chances of getting credit. It is important to own one even if you don’t need to. Just get one, use it then pay at the end of the month. Many wealthy people have missed out on credit because they lacked a credit history.
Always pay on time.
Paying on time builds credit faster and increases your trustworthiness. Ensure your payment does not go over the listed date. Always pay before or on the stated date.
Pay debt with the highest interest rate first.
It is advisable to pay debt according to their interest rates. Pay the one with the highest interest rate first so as to avoid accumulation of a lot of debt. However, you should come up with a plan on how to reduce the debt owed. Work part time if possible to raise more money so as to pay the debt faster.
Do not close down paid off credit cards/line.
Old credit cards are also used in calculating your credit scores. It is important to keep open old credit cards even if you are not using them as long as they are paid off and have good credit history. The more open credit you have, the lower the balances the better your score. This shows stability. However, you should never open a credit card that you have no intention to use just to improve your credit scores. This might lead to even lover ratings.Consult with a
consolidation firm for easy repayment options.
In case of a bad credit rating one can visit a consolidation firm. The firm will analyse your financial record and come up with payment options that suite you. However, the interest rates would most likely be a little higher than for a person with good credit rating. Frequent payments of your debt would lead to better credit scores for you.Have
Some creditors send texts or emails to remind you of your payments but you should come up with ways of reminding yourself in case they fail to. Timely payments contribute a greatly in bettering your credit scores.
In conclusion, you should start with checking your report the plan on how to improve your credit scores bearing in mind the above strategies. However, it takes time and patience.