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How To Boost Your Credit Rating?

It has been a challenge for a lot of people on how to get good credit rating however, such score ensures 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. And by just looking at these figures, it only shows that you must need to ensure that your bills are paid on time 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 – it is a surefire way of improving your credit rating by having a couple of active credit cards. 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. Say for example that you’re not qualified for traditional credit card, then you might like to try a secured one.

Number 3. Avoid creating plenty of new accounts – every time that you apply for a new credit card, the company is going to perform a hard check on your credit status. Opening lots of new accounts also mean that more checks should be performed and if there are many checks to be done, then your credit score will definitely suffer when applying for cards. This is mainly because of the fact that doing such checks on your credit rating are associated with people who are desperate in getting credit and it is wise to minimize them.

Number 4. Limit your rate of utilization – despite the fact that it’s recommended to apply for a credit card in improving your credit rating and to lower its value, the better the score you are going to get. As a matter of fact, it’s fairly simple to calculate the usage. Just divide your credit balance into your credit limit and arriving anything between 0 to 20 percent is fine. You may try to limit the expenses you’re making on your credit cards or you can talk to your provider too in order to improve your credit rating.