How to Fix your Credit Score & Tips to Improve Credit Score

2019/02/25

Are you looking for a good home mortgage, or want to take a look to buy that swanky, new car? Whatever maybe the reason for you to take a loan, creditors would want to determine your risk levels – are you likely to repay on time or would you be a defaulter.How to Fix your Credit Score & Tips to Improve Credit Score

And the best way to check your financial strength is by analyzing your credit scores –payment history, amount owed, time period of your credit history, type of credit cards, any new credit, etc. The better your scores, the less risky you are and the greater are your chances to getting that low-interest loan.

Gaining a good credit score does not happen overnight – it takes time and requires a lot of effort from your side. The only quick-fix way to a credit score is by repaying your debt. If you are looking to improve your credit score then begin by improving your payment history.

Pay your bills on time: Late payments will definitely bring down your credit scores. Pay your over-dues as the earliest and make your bills current. If you still have a problem with making payments on time, negotiate with your creditors to work out a suitable payment arrangement that will keep the negative part of the payment information away from your credit reports. You could also make an agreement where the collection agency agrees to remove the debt if you pay it.

Minimize your debt: The best way to do this by keeping your credit card balances low, thereby avoiding big debt-to-credit-limit ratios. If you have debts, pay them off – don’t try to work around them. If you have any unused accounts, keep them because zero balance can actually help your credit score.

Control new credit: Don’t open several new accounts – this will lead to many credit enquiries which will not help your credit rating. If you have a bad credit history, open a few new accounts and pay them on time. Remember; do not max out your credit limits.

Combine your credit cards with loans: This will help increase your credit scores, but only if you manage your credit card wisely.

How to Fix your Credit Score & Tips to Improve Credit Score personal-finance

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