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4 Ways To Improve Credit

If your credit score is good, then you can easily get loans. However, a poor credit score affects your finances and makes it difficult for you to opt for a loan. Poor credit score is linked to hidden fees and high interest rates in loans, that is, if at all you manage to get a loan. Moreover, things like renting an apartment for yourself or getting cell phone contracts gets all the more difficult. You might even have to pay higher premiums for insurance.

Improving your credit score is not an easy job and doesn’t happen overnight; however, there are certainly some steps that you can begin to take in order to improve your credit score:

4 Ways To Improve Credit

  • Checking your Credit Report

The very first step you need to take to improve your credit score is to first check the extent of improvement you need to take. A good credit score is usually 700 or above; a fair score is between 650-699; a poor score is generally between 600-649; and a bad credit score falls below 600. Review your score in any credit reporting agency.

  • Keeping your old debt aside

Most of your credit report will be dropped off after seven years, even though negative items are bad for your credit score. The debt that you have already paid off, or are currently paying on time (Good debt) includes old debt. So you don’t have to try to remove your old debt just because it has become old. Good debt is always good for your credit score, and if your track record is full of good debt, your score will be good as well.

  • Timely Payment of Bills

If you’re paying your bills on time, then keep it up! And if you aren’t paying your bills on time, then you sure need to start doing that. Timely payment of you bills is one of the greatest factors that influence your credit score and improve it. Track record of late payments and your bills being sent to collections negatively affect your financial stand and for your ability to obtain loans for bigger purchases regardless of your savings account or your income. It is essential to be organized and use a monthly calendar to keep a track of your payment due dates.

  • Taking Charge of Your Credit Cards

Your credit score is also influenced by how much of your available credit you’re utilizing on your credit cards. If your usage is 30% or less, then your credit score will be better. To seriously improve your credit score, it’s good to restrict yourself to just one or two credit cards, try to pay your dues monthly and on time, and keep the percentages low. If you can no longer use a credit card because of bad credit, then you can apply for a secured credit card. Gradually, your credit score will increase if you take care of these points, and use your credit card responsibly and keep in mind your credit card limit.

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John Paul
John Paul
John is a full-time blogger and loves to write on gadgets, search engine trends, web designing & development, social media, new technologies, and entrepreneurship. You may connect with him on Facebook, Twittter and LinkedIn.


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