When it comes to your credit rating, you can always work to increase it. Today's world seems to revolve around your credit rating. This affects many parts of your life — your apartment, your work, your insurance premiums, and your ability to borrow money. A good credit rating allows you to buy a house, get a mobile phone, pay less at your interest rates and easily find a loan.
Your credit rating is also often called a FICO account. An account tells lenders what kind of borrower you are. If you have a high score, it means that you pay your debts on time and in accordance with promises. A low score indicates that you risk not paying your debts. FICO scores range from 300 to 850.
Credit scores reportedly focus on the last two years of your credit report. They will consider all your information, but the focus is on the very latest. This gives you the opportunity to quickly increase your score. Yes, it may still take up to a year to see great results, but they are worth it.
Your credit rating is based on:
- Payment History – 35%
- Availability of credit and use – 30%
- Duration of opening accounts with creditors – 15%
- Credit requests – 10%
- The composition of your credit file (type of your debt) – 10%
The good news is that although it takes some time, the steps to improve your credit rating are pretty simple.
Start will receive a copy of your credit rating from each of the three major credit bureaus: Experian, Equifax, and TransUnion. Review each report for inaccurate information. Most people will find a mistake in their report at least once in their life. These errors can lower your score and cost you a lot of money, so it’s important to make sure your report is accurate.
Once your report is accurate, start paying bills on time every month. This is the main thing that will raise your score. Late payments will lower your bill faster than anything else. You have to pay on time, every time.
Take steps to minimize your debt. You want at least 50% of your loan not to be used. This means that if you have a limit of $ 20,000 on your credit cards, you do not want them to be charged more than $ 10,000. In fact, lower this as much as possible. The less you owe, the higher your score.
Pay on time and pay as much as possible. These two methods will help you easily raise your score. This will not only increase your score, but also save you a lot of money. You will not have overdue commissions, you will have fewer bills to pay debt, and you will receive higher interest rates from lenders. There are many advantages to a good loan, and anyone can have a good loan. It takes a little work and a little time.