Almost everyone knows that when you seek to purchase a house or a car, the lending agency will review your credit score to see what your rating is. If your credit rating is lower than you would like it to be, there are some ways you can improve your credit rating that you can implement immediately.
Pay Bills on Time
This is one of the best steps you can take is to pay your bill on time. As a matter of fact, if you can mail your payment in seven to ten days prior, this will ensure that your payment is received on time and will not be delayed. Mailing the bill two or three days prior to its due date hoping it is received on the day actually increases your chances of the payment being received late versus on time.
Keeping Low Credit Card Balances are Essential
Another good step is to keep the balances on your credit card low. It is not against the low to have a balance that is lower than your limit. Work to get you balance 50% lower than your limit. This step alone could give you some breathing room when it comes to managing your household finances.
Remove Old Debt
It is always a great step to remove old debt. Knowing that you did not get into debt overnight, order a new credit report. Then develop a plan to pay off that old debt versus ignoring the debt. Pay off old debt one at a time so that you do not get into the problem of creating new financial strain by talking to more than one creditor at a time.
Limit the Number of Credit Inquiries
If you were not aware credit inquiries actually go against your credit rating by several points. The first step you can take in limiting credit inquiries it to stop applying for new credit card accounts. Second, when you are in department stores and they invite you to apply for store credit, you can decline and make your purchase in cash.
Help Available for Those with Poor Credit
For those that have poor credit and are interested in rebuilding their credit, they have the option of getting a secured credit card that reports to credit bureaus. Be sure and investigate what is the required deposit for a secured card. Also, there is the option of applying for a credit card that is specific for those with bad credit or no credit history.
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