5 Flawless Ways to Improve your Credit Score Rating
January 24, 2013Yes, these methods are guaranteed to improve your credit score rating. There are no gimmicks, no shortcuts, just tried and tested means that work. And they don’t cost you a thing!
There are companies who boast that they can get your score lowered for you, for a fee of course. Some question the methods those companies use though. They look for loopholes or fast-fixes that might come back and bite you. Your credit score could actually end up being worse than it was! That won’t happen if you take the following safe, sensible, and certified steps to improve your credit score rating.
Improve Your Credit Score Rating by Getting a Credit Card
One of the least known ways of improving your credit score rating is to obtain a credit card if you haven’t got one. If you’re unable to qualify for a standard card because of an already low rating, you can apply for what is known as a secured card. With this type of card, you simply deposit a set amount into an account and the bank issues you a card with an equal amount of “credit.” The amount on the card is secured by your deposit. Though it is not really credit, it gives you an opportunity to establish a new payment history which will increase your credit score.
Improve Your Credit Score Rating by Keeping Old Accounts Alive
It is better to keep old accounts alive and use them occasionally for small purchases. Make sure you charge only small amounts that allow you to pay the balance off regularly. Establishing a consistent record of regular payments can raise your score substantially in a relatively short period of time.
Improve Your Credit Score Rating by Staying Within Your Limit
This is a pretty obvious one but not something that many credit card holders adhere to. Maxing out your card regularly seriously damages your credit score rating. The best practice is to keep your balance at about thirty percent of the limit. If you need more credit than that, use a different card. It’s better for your credit score to have two cards with balance of thirty percent than one with sixty or seventy.
Improve Your Credit Score Rating by Paying Bills on Time
This is another obvious way to keep your score up, but it’s not always easy to do. If you consistently pay your bills late though, you will do serious damage to your credit score. In fact, paying bills late has the biggest negative impact on your score. If you do have difficulty making a payment or payments, it is always best to call the creditor and ask for time. Many are happy to do so, and it saves you the penalty of having your credit score rating lowered by being reported to the credit bureau.
Improve Your Credit Score Rating by Clearing Up Old Disputes
You might have some credit disputes that you have already settled or even outright errors in your credit report. Many of us have been overcharged or wrongly billed for products or services. Unfortunately, if we don’t make the effort to have them removed, nobody will! The credit bureau has no way of knowing that you settled the dispute or that you were wrongly charged unless you notify them. Unfortunately the process is a long one, and you must write the credit bureau a dispute letter. It is better to make the effort though than to have your credit score rating suffer unjustly.
Ethel Wilson is a financial and credit specialist with 12 years experience in the banking, credit scores, and financial industry. She has advised countless clients on how to improve their credit score rating. She now shares the best of her credit score rating information as a contributor and editor of http://www.creditscoreresource.com