Wednesday, October 28, 2009
Have Bad Credit? 3 Definite Ways to Improve Your Credit Score
It is really difficult to secure a loan if you have a poor credit score. Even if you manage to get a loan, the interest rates will be high on that loan. If you are little cautious and can follow the below tips it will make sure that you can be well on your way to great points.
1) Make sure to pay the dues within 30 days.
If you glance through your credit report, you will realize that about one third of your credit score is based on debts which are payments later than 30 days. If you can do a checklist on your payments and keep a reminder on your cell phone or your emails for your due dates you can make sure that this scenario can be avoided. Or worst case if you have delayed on your payments, makes sure to pay the same within the next thirty days.
2) Cancellation of credit cards
Contrary to popular belief, cancellation of the credit card actually hurt your credit score and will get listed in your report. If you have an oldcard which you are not using it for quite some time it is still better to keep the card alive. This will give you a better credit to debt ratio based on your open credit account.
3) Use your credit card wisely.
Many people prefer to pay in cash rather than using their plastic. However, if you can use your card wherever you can and can pay your credit in full from your bank account makes sure that you add points to your credit history automatically. This will ensure that you get a nice credit report which you can submit to the financial institutions while availing a car or home loan.
Hi,
ReplyDeleteAn important advice to improve credit score is to have a range of credit types. Lenders like to see that you can handle different types of credit such as a mortgage, car loans, and credit cards. Keep track of your money. Impulse spending really adds up.