Being able to have good credit rating is a big challenge to many people but, such score ensures you lots of things. As you read this article, there are many different ways on how you could achieve this which is what you will learn in the next lines.
Number 1. Be timely with your bills – actually, your payment history accounts for around 35 percent of your credit score. By just checking these figures, you really have to be sure that your bills are paid on due date in order 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.
Not only that, it’s pertinent to understand that the late accounts for more than 3 months are more likely to attract high negative score. For this reason, you may like to start with payments that are long overdue and hasten to complete the most recent ones and pay it in full.
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. It means that you’re making payments right on time by being responsible. You may try a secured one instead in the event that you don’t qualify for the traditional credit card.
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. As you open lots of new accounts, it also means that there are more checks that should be done and if there are, then it will probably make your credit score to suffer when applying for cards. This is because of the reason that doing these checks on your credit rating come with those who are desperate in trying to get credit and it is preferable 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. As a matter of fact, it’s fairly simple to calculate the usage. All you need to do is to divide your credit balance into your credit limit and when you get 0 to 20 percent, you’re doing just fine. Otherwise, try talking to your provider or limit your expenses on your credit cards to improve your improve your credit rating.