Minggu, 29 Juli 2012

The Best Three Ways to Improve your Credit History

The Best Three Ways to Improve your Credit History

Today your credit score is the deciding factor as to whether you qualify or not when you apply for a loan; like a mortgage, personal loan etc. Even to issue credit or debit, banks and other financial institutions consider a credit check. With a poor credit score lenders avoid giving you a loan or sometimes they’ll lend but at a higher interest rate than someone who has a better credit score. So here are the best three ways to improve your credit history:

 
Pay your bills: Pay your creditors on time. This is the most important factor that determines your credit score. Never delay the payment, when you don’t have full cash to pay off the entire credit then at least pay the minimum for every month; that is essential. But don’t keep minimum payment as the only option, because with this you will have to pay a lot on interest. However if you can’t afford to pay a whole sum at once then pay off the minimum payment regularly.  But don’t neglect your bills by not making a payment at all. If you owe more than one creditor then keep a list of all their payments, write due dates of each bill and make sure  you know how much you pay for each bill. You can even pay additional payments towards the bill that has the highest rate and clear it off but at the same time make sure you pay the minimum amount on each card within their due dates.

2.      Clear your debt: If you owe debt on your credit cards clear it because most of the credit lenders look at the credit amount that is available and the amount you owe while performing your credit check. So be sure you reduce your debt as early you can. Payday loans can help you to get out of debt by crediting cash instantly so that you can rescue yourself from any extra debt you may incurred when using your credit cards.

3.      Transfer from one card to another:The best thing you can do here in order to raise your credit score is ask your creditors to raise the limit on credit line. This is because if you have more credit and less debt on your credit cards then your score will be better. If you encounter any mistakes with your credit card then make sure that they are rectified as early as possible. Contact your creditor company asking them to change the incorrect information if there is any. And pay of all the debts that you have borrowed in terms of cash advances. Even then if your score limit line is not raised then it is better to transfer the amount from one card to the other card as this has lower interest rates when compared to the existing.



My name is Michelle. I am a tech writer from UK. I am into Finance. Catch me @financeport

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