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How To Boost Your Credit Rating?

Getting good credit rating has been a real challenge for many people however, such score guarantees 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 – as a matter of fact, your payment history accounts 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.

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. And for this, you may wish to start with the 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. There is no way for your credit score to be low say that you have qualified as being a responsible card holder. It means that you’re making payments right on time by being responsible. 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 – the company is going to perform a hard check on your credit status every time that you apply for a new credit card. 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, you may want to limit the expenses you make on your credit cards or you may talk to your provider as well to be able to improve your credit rating.