Effective Tips to Improve Your Credit Score

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Let’s face it. Credit is better than debit. Especially when it’s on your balance sheet or in accounts books at the end of the month. Almost everyone thinks the same way, including your neighborhood bank. When it comes to lending money to a customer, the banks are all about the credit.

Credit scores become vital in this regard. The term refers to the capability of the person taking the loan, to pay off the amount. Whether it is possible for them to do, and not default. This means if you have a great credit score, banks are more likely to be happy lending you money. Not just with banks, your credit score is considered when you’re being offered insurance, whether that’s for your house or for your vehicles.

Here are a few ways to keep those credit scores high.

  1. Understand what goes into your credit report

If you understand the elements that go into making a good or bad credit score, you can work your finances and transactions out accordingly. This should be the first step to getting your credit score to good levels. A good credit score is based in its entirety from information received from the credit report. So we can’t stress enough on the importance of a good credit report.

  1. A high credit limit on your credit card

If your credit limit is high, it means the average utilization ratio on your cards remains low. That translates into a better credit score. The lower the limit, the lower the ratio and that means great ratings on FICO, a credit score rating model. After you’ve done this, do ensure that the balance amount or outstanding amount is not high on your credit card.

  1. Pay your bills on time

This is perhaps the most important way to keep your credit score on the up and up. There are various models for rating credit and of them the FICO is the most used. Every time you keep a payment pending, be that a loan amount, tax, on your cards or mortgage or even court fees, it causes the FICO rating to fall. That means as long as you keep your payments happening on time, the rates remain high and that means a better credit score for you.

  1. Split balance

If you’ve got multiple credit cards, try to even out the balances between them all, equally by distributing balances from your most used, high balance card to the others with relatively low usage. Do the same for the charges levied on cards too.

  1. Leverage on the old

The older your credit history, the better it is for you, as long as it is a good one. When you apply for new credit in the form of a loan, it shows up on your credit report. This is seen by banks and groups whom you’ve approached for a loan. It is a good idea to show your credit worthiness by pointing out your good repayment history track. This will help your case further.

Above all, be patient. Improving credit scores is not an overnight task and requires time and effort. Watch out for claims from fraudulent companies offering you quick-fixes. Stick to the path you’ve set out for yourself of keeping your credit track clean and you will see a different in your credit score soon.  Good luck.

This guest post has been brought to you by Robin Mckenzie of Buycenturylink.com, a site that offers savings and current information on consumers broadband internet and cable. Visit now as well as centurylink.com to check for services in your area.

Legitimate, Effective Credit Report Repair

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Robin Mckenzie likes writing articles related to Technology News, Gadget Reviews and How To’s. He also does guest posting for Buycenturylink.com, a site that offers savings and current information on consumers broadband internet and cable.

One Response

  1. Your leveraging tip is amazing. Good and old credits are a great help in effectively increasing credit scores. Creditors always look for records and old but well-handled credits will assure them that the consumer is economically responsible. Thanks for sharing.

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