Your credit score, no doubt, is a very useful number that lenders need to know whether or not they will extend credit to you. It also dictates what the interest rate and terms of the credit or loan will be. The lower your score, the less likely you will be considered for loans. And if you are eventually considered, you may have to pay a very high interest rate. So, it is vital you learn of ways to improve your credit score.
One of the ways to improve your credit score is to make your payments on time. This is the single most vital thing you must do to keep your score high. Your credit history is a major factor to determine your credit score.
One of the ways to improve your credit score is NEVER to allow payments that are past their due date or about 30 days linger for too long in your account. This will negatively impact your credit score and affect your credit rating. And you know what? The negative scores will stay on your credit report for at least seven years. I bet, you will not want this to happen to you!
Keeping your total debt under control is also one of the ways to improve your credit score. You need to keep borrowing under control as your credit score will bring to bare the total amount you owe.
If you have a significant amount of debt you owe at the moment, I will advise you stop borrowing and consider ways to improve your credit score, by lowering the balance. I know it is not easy. But you need to stop borrowing or using your credit cards, as you do your best to make timely payments that will reduce your balance.
Be sure to keep your old account open as one of the ways to improve your credit score. The length of your credit history is a vital factor to your credit score. While you like to keep the number of accounts manageable, it can negatively affect your score more to close an old account than to leave it open. Even if it means that you have more open accounts, it pays!
Finally, one of the ways to improve your credit score is to exercise caution when you want to open new accounts. I know your new account is the least factor to your credit score, yet, it is an important factor to consider.
When you are shopping for a new loan or credit card, do your shopping in a relatively short period of time. You will not want your report to show that you are always looking for credit, will you? I know you will not want to open an account you don’t want to use either.
I know it may be tempting to get the additional 10% off when you open a new retail score card. But you will want to resist the temptation because the meager amount you save with a new cannot measure with the negative impact on your credit score.