Improve Your Credit Rating - 4 Easy Steps to Improve Your Credit Rating
It's a well known fact that having a good credit score can save you thousands of dollars on everything from mortgage payments to credit card interest rates.
But if you've had some problems with credit in the past, you may be finding it difficult to improve your credit rating.
In this article, I'll provide you with four easy steps to improve your current credit rating that can start saving you money in just a few short months.
So what is a good credit score? Generally speaking, a good credit rating is a score of 700 or above.
Although loans and financing can still be easily obtained by people with scores much lower than that, those consumers may find themselves paying exorbitant interest rates and fees.
In fact, even consumers with credit ratings in the 500 to 600 range can still obtain financing.
Just remember all of those attractive, low interest rates you see in the newspaper and on television are reserved for those consumers with excellent credit ratings.
So how do you improve your credit score? The first step to improve your current credit rating is to limit your spending on credit cards.
Just because you have an available line of credit of $10,000 doesn't mean you have to go bananas and spend all.
It's a common misconception that carrying debt will improve your credit rating.
In fact, keeping your credit card balances under 35% off your total available credit line is what you should strive for.
Next, limit the number of credit cards you keep.
Old accounts with good payment histories are a positive influence on a good credit rating, so don't close them out.
Instead, stay away from opening new accounts that may be unnecessary.
Even if you have a need for emergency cash, try to manage the lines of credit you already have without opening any new ones.
Once you have your credit spending and balances under control, you should constantly monitor your credit reports.
Keeping tabs on monthly changes to your report is a great way to gauge how well you are doing with improving your credit worthiness.
Measure your results, and make changes where necessary.
And last, pay off any outstanding collection accounts you may have.
Even small collections, like medical bills or unreturned rental movies, can be detrimental to a person's credit rating.
I recommend spending an afternoon rounding up all of those small, unpaid bills, and sending out payments to settle the accounts.
Removing these small collections from a person's credit report can't be done until they are paid.
Although it's easy to see why so many people want to improve their credit rating, many people are still intimidated by the process.
Hopefully after reading this article you now realize that it is relatively easy to improve a person's credit score, it just takes time and determination.
Even though you won't see results overnight, by following the simple steps outlined in this article you should see a measurable improvement in your credit score in just a few months.
Taking just a small amount of action today could save you thousands tomorrow.
But if you've had some problems with credit in the past, you may be finding it difficult to improve your credit rating.
In this article, I'll provide you with four easy steps to improve your current credit rating that can start saving you money in just a few short months.
So what is a good credit score? Generally speaking, a good credit rating is a score of 700 or above.
Although loans and financing can still be easily obtained by people with scores much lower than that, those consumers may find themselves paying exorbitant interest rates and fees.
In fact, even consumers with credit ratings in the 500 to 600 range can still obtain financing.
Just remember all of those attractive, low interest rates you see in the newspaper and on television are reserved for those consumers with excellent credit ratings.
So how do you improve your credit score? The first step to improve your current credit rating is to limit your spending on credit cards.
Just because you have an available line of credit of $10,000 doesn't mean you have to go bananas and spend all.
It's a common misconception that carrying debt will improve your credit rating.
In fact, keeping your credit card balances under 35% off your total available credit line is what you should strive for.
Next, limit the number of credit cards you keep.
Old accounts with good payment histories are a positive influence on a good credit rating, so don't close them out.
Instead, stay away from opening new accounts that may be unnecessary.
Even if you have a need for emergency cash, try to manage the lines of credit you already have without opening any new ones.
Once you have your credit spending and balances under control, you should constantly monitor your credit reports.
Keeping tabs on monthly changes to your report is a great way to gauge how well you are doing with improving your credit worthiness.
Measure your results, and make changes where necessary.
And last, pay off any outstanding collection accounts you may have.
Even small collections, like medical bills or unreturned rental movies, can be detrimental to a person's credit rating.
I recommend spending an afternoon rounding up all of those small, unpaid bills, and sending out payments to settle the accounts.
Removing these small collections from a person's credit report can't be done until they are paid.
Although it's easy to see why so many people want to improve their credit rating, many people are still intimidated by the process.
Hopefully after reading this article you now realize that it is relatively easy to improve a person's credit score, it just takes time and determination.
Even though you won't see results overnight, by following the simple steps outlined in this article you should see a measurable improvement in your credit score in just a few months.
Taking just a small amount of action today could save you thousands tomorrow.
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