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5 Easy to tips to help you improve your credit score fast

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Learning a few basic things about the credit system can help boost your rating. In this article, I shall give you some easy tips improve your credit score so you can qualify for better, or even the best, rates in credit cards, car loans, mortgages and anything else that goes with the “C” word.

First, here’s a secret; your credit score is made to maximize profits for banks and other interest parties. It is not about you.

Yes, the whole credit system is made in such a way as to keep as many people as possible in “sub-prime” status. This is the most profitable status for banks as they can now hit you with high interest rates that help their bottom-line and screw up yours.

It is for this reason that the system has been made in such a way as to make it extremely difficult to get back in good credit status once you have a ding or two.

The system also treats everybody the same regardless of the reason for having the dings: a person who has credit problems because he/she had been hospitalized gets treated the same as a crack-head.

But let’s now get back to the tips to help you improve your credit score:

1.Starting paying bills on time: This is the most fundamental of all the tips to help increase your credit rating. If you can’t make your payments on time moving forward, don’t even bother reading any farther as it won’t help you.

2.Reduce your debt to credit ratio: A maxed out credit card can cause a loss of up to 45 points on your credit score. Now, imagine that your have more than one maxed out credit cards as most of us often do. While lost points do not automatically get double or tripled, it can cause a serious ding on your score. Also, 30 percent of your score is factored on your debt to credit ratio. Keep your credit card balances low.

3.Build a credit profile: This means creating different types of credit. A person with a total of, say, $20,000 in credit cards only will typically score less than a person with $20,000 but with a credit card, a car payment and a mortgage and/or school loan.

4.Dispute inaccurate items on your credit file: The Fair Credit Reporting Act protects you from having inaccurate information reporting on your credit file. But here’s a secret: even “accurate” items can successfully be disputed and removed if you know what to look for. This is a whole other subject that can fill a book (and books have been written about).

5.Keep old accounts open: Unless you really have a serious spending problem, keep your old credit accounts open. Why? Because they help build your credit history and keep your overall available credit up. This is the reason you should avoid debt consolidation services (again, unless you really have a debt problem) as you will be required to close all open accounts.

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