5 Tips For A Better Credit Rating
If you follow these 5 tips for a better credit rating you will be surprised how your credit score can quickly improve. What does that mean in real terms? It means that you will be able to borrow at lower rates and you will be pretty much guaranteed a warm welcome when you call your bank for a loan.
1. A very simple tip to get us started, but probably the most important one; Pay on time. No really, it’s that simple. Make your payment on or even before the due and you’re showing that you take your credit commitments seriously. If a payment falls due at the week end ensure that your payment is made by the Friday not the Monday. Maybe you don’t think it’s a biggie but I’ll tell you who does – your lender.
2. Keep your credit cards for two things and two things only. Emergencies and the credit protection insurance they offer on purchases. If you need cash in an emergency credit cards can be a godsend but don’t use them to live on. They’re designed for short term borrowing and the interest rates reflect that. Having said that however, most cards offer up to 60 days insurance on goods you buy. So use that to your advantage especially on purchases you make away from home and let the credit card companies carry the risk instead of you. Always keep in your mind that having high balances on your cards indicates to lenders that you are an above average repayment risk and they will charge you accordingly.
3.Avoid borrowing to pay off smaller debts with a consolidation loan more than once. Lenders view borrowers who keep requiring consolidation loans as very high risks. It’s always better to pre-plan your borrowing so that you get a loan at a low rate to start with rather than having to consolidate a number of higher rate debts.
4. Live within your means and don’t max out your lines of credit. You may truly believe that you can afford all the repayments that you’ve managed to amass as you’ve bought yourself yet another little treat. Experience has proven to lenders though that very few of us can actually do that simply because life comes along and throws a spanner in the works. The result of this is that they will see it as a big red flag on your credit report.
5. Remember to check your credit report every year or so. It’s one of the best ways to avoid becoming a victim of identity theft credit fraud. By getting hold of, and checking, your own credit report you can see exactly what is going on with your credit file. You’ll not only be able to spot any fraudulent transaction but also correct any information that you find is wrong with the genuine commitments you have.
So there you have it, 5 quick and easy ways to enable you to improve your credit rating. Start to implement that now and you’ll soon be on your way to a better credit rating.
If you follow these 5 tips for a better credit rating you will be surprised how your credit score can quickly improve. What does that mean in real terms? It means that you will be able to borrow at lower rates and you will be pretty much guaranteed a warm welcome when you call your bank for a loan.
1. A very simple tip to get us started, but probably the most important one; Pay on time. No really, it’s that simple. Make your payment on or even before the due and you’re showing that you take your credit commitments seriously. If a payment falls due at the week end ensure that your payment is made by the Friday not the Monday. Maybe you don’t think it’s a biggie but I’ll tell you who does – your lender.
2. Keep your credit cards for two things and two things only. Emergencies and the credit protection insurance they offer on purchases. If you need cash in an emergency credit cards can be a godsend but don’t use them to live on. They’re designed for short term borrowing and the interest rates reflect that. Having said that however, most cards offer up to 60 days insurance on goods you buy. So use that to your advantage especially on purchases you make away from home and let the credit card companies carry the risk instead of you. Always keep in your mind that having high balances on your cards indicates to lenders that you are an above average repayment risk and they will charge you accordingly.
3.Avoid borrowing to pay off smaller debts with a consolidation loan more than once. Lenders view borrowers who keep requiring consolidation loans as very high risks. It’s always better to pre-plan your borrowing so that you get a loan at a low rate to start with rather than having to consolidate a number of higher rate debts.
4. Live within your means and don’t max out your lines of credit. You may truly believe that you can afford all the repayments that you’ve managed to amass as you’ve bought yourself yet another little treat. Experience has proven to lenders though that very few of us can actually do that simply because life comes along and throws a spanner in the works. The result of this is that they will see it as a big red flag on your credit report.
5. Remember to check your credit report every year or so. It’s one of the best ways to avoid becoming a victim of identity theft credit fraud. By getting hold of, and checking, your own credit report you can see exactly what is going on with your credit file. You’ll not only be able to spot any fraudulent transaction but also correct any information that you find is wrong with the genuine commitments you have.
So there you have it, 5 quick and easy ways to enable you to improve your credit rating. Start to implement that now and you’ll soon be on your way to a better credit rating.
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