How to Improve Credit Score
Understanding how to improve credit score is your key to saving thousands of dollars. Your credit score is personal to you but it is not something you do not have control over. Many people just accept their credit score, but if you know how to improve credit score then you can get larger, quicker and cheaper credit.
My credit score was very poor due to certain circumstances beyond my control and some in my control. When I tried to get credit I was either refused or had to pay a larger amount in interest payments. It was hopeless until I discovered there are ways to manipulate your score. Imagine my surprise when I was researching how to improve credit score that it is not a level playing field. Businesses see a different credit score to the one you see. This was not fair and it was time to do something about it.
There are 5 basic ways you should know how to improve credit score, but there are other ways in addition that will work in your favor! Here are the 5 most well know ways:-
1) Pay your bills on time
Missing payments will damage your score, and as your payment history makes up over one third of your credit score, this should be taken very seriously. Recent credit history is more important that events that happened a few years ago, but remember the report will still show missed payments.
2) Don’t close you old account
Your old accounts can add to your credit score. They will show that you have had credit with a bank for a long time. Closing this account will reduce the time you have had credit and make you appear more ‘risky’ on paper. It is these little tricks that I used to determine how to improve credit score.
3) Reduce the amount you borrow.
This sounds simple but by reducing your borrowing you can increase your score. Banks like to see you have the ability to pay off a loan, this way you are less of a risk and they are more likely to lend you money in the future.
4) Do not become bankrupt
By becoming bankrupt you will destroy your credit score, and this is something that will not go away quickly. A bankruptcy can last as must as 10 years on your credit report and is very damaging to your score.
5) Get a copy of you credit report
This is essential. You should scrutinize your credit report for errors. In some cases there can be items on your credit report that do not have any relationship with you. These could be damaging your score and you would never know.
Ok so these are the more well know ways of how to improve credit score, the top 5 ways, but as I mentioned earlier there are many more ways that you can go about credit score repair.
By understanding these techniques you can rocket you credit score as I did and command better interest rates for loans saving yourself thousands in interest payment. So do you want to know how to improve credit score further? Well that was the secret, but it is now thankfully a secret we can all have access to.
Don’t forget, you can do something about your credit score. Understanding how to improve credit score is your key to cheaper loans and long sought after savings. If you now want to know how to improve credit score then you are in the correct mindset to achieve your goal. Don’t sit by and have your credit score run your life. Take action today and you can use your credit score to your advantage as I did!
