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. 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 – your payment history actually accounts for roughly 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.
In addition to that, it’s pertinent to understand that late accounts for more than 3 months attract 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. Say that you qualified as being a responsible card holder, then there’s no way that your credit score would be low. 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. 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 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.