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A Top-Notch Credit Score Is Possible, If You Know What You’re Doing

8 May 2017 No Comment

Upping your credit score can sometimes feel like a bit of a mission. And, truth be told, there aren’t usually any quick fixes. However, there are things that you can do to raise your credit score if you’re prepared to work at it. Here’s what to do.

Keep An Eye On Those Credit Card Balances

One thing that could be undermining your attempts to improve your credit score is your outstanding credit balance. When rating agencies assess your suitability to receive loans, they’ll look at how much of your balance is left on your card at the end of every month.

Most analysts agree that people should, in general, aim for a credit card balance of 30 percent or lower.

Some credit card companies will still report a high utilization rate to credit card companies, even if you pay off your credit card balance in full at the end of every month. As a result, it might appear that you’re more dependent on credit than you actually are. If you think that this is the case, then it might be worth seeing whether your credit card company will allow you to pay off small chunks of your balance in weekly intervals.

Pay Your Bills On Time

It doesn’t matter how big a pile of savings you’re sitting on, one missed bill could seriously damage your credit score. That’s because companies that don’t receive payments from you immediately inform the rating agencies who then pass on those details to banks and building societies – the people who make the loans. In essence, it could make taking out a loan on a car or getting a mortgage a lot more difficult.

Linda Sherry, one of the executives at consumer action says that the credit rating agencies can be brutal and extend to things you’d never normally expect. For instance, she says that some people can have their credit rating destroyed by not returning books to their local library. As such, if you care about your credit score, it’s probably best to use Kindle instead.

Shop Around For Loans

Part of proving that you’re creditworthy is taking out loans and then paying them back. But the type of loan you choose should be helpful, not harmful, according to loanonline.co. It’s a good idea, therefore, to compare loans just like you would anything else you buy to make sure that you’re getting the best deal. If you’re not, then it might be a sign that you need to change your provider. Bad loans can quickly wreak havoc on your credit score

Do Your Shopping Quickly

Credit rating agencies take advantage of all the information available to them to rate individuals. And to the surprise of many, they even care about the frequency with which people apply for credit. Each time you apply for a credit card, your credit score takes a small dip. This is because you’re probably trying to take on more credit and your risk is going up. If you do apply for credit, bankrate.com recommends that you keep your applications confined to a short window of time.

 

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