How To Improve Your Credit Rating
Improving your credit rating first and foremost involves obtaining a copy of your credit report and thoroughly checking it for any mistakes. Sometimes incorrect information can go unchecked for years and lower your credit score. Once a mistake is identified, take the necessary measures to have it corrected. If there are no mistakes on your credit report, steps such as paying your bills on time and paying down your debts can help improve your credit score. Credit history makes up 35% of your credit score and recent history holds more weight than past history. Also, charging less on your credit card, even if you are paying your credit card bills, can help strengthen your score. Another way to improve your credit rating is by not closing down old accounts that have been paid off. Closing these can lower your credit score by lowering the amount of credit available to you and making any balances you have seem larger in credit score calculations. This is particularly useful advice for those who charge large amounts and are about to apply for new credit. Check your limits to make sure that they are updated and keep using old cards in order to maintain the accounts with credit bureaus. Lenders can also sometimes erase one late payment if you've been a good customer, so it never hurts to ask. Also, If you've had an old bill that you felt was unfair, you can dispute that charge with the credit bureau and if the amount is small and old, chances are that the bureau wont verify it when your report is investigated.
» Taking Baby Steps: Starting by using Credit, Gas and Store Cards
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