Improving Your Credit Score

By Leni Parrish on January 27, 2010

Have you gone to a gym? If so, then you must be aware that it is not easy to be in shape and build muscles. When already in shape, you cannot stop working out if you want to maintain the muscles and to keep your body toned. These things are similar to a credit score. If you want to improve your credit score after having some troubles in the past, then you will need time to do that. Begin the habit of paying on or before the due dates. Once you have reached the desired score, continue managing debts in a responsible manner so as to maintain it.

Improving credit means you must consistently make debt payments promptly. Gradually, on-time payments will help a score increase. Different individuals will have different time frames because of varying circumstances. Even if a bad rating is still on your records, it will eventually have less impact on your score since the on-time payments will slowly replace the bad financial status.

Do not let credit card balance reach the limit. If the balance is already close to the limit, then start paying your debt. Reaching maximum credit will lower down your score. For instance, you have a card with a zero balance and a limit of $ 7,500. If you purchase an item worth $6,000, you will be making use of 80% of your total credit, which can decrease the score. Using 30% alone of the total credit will start affecting it. Just imagine if you use 80%.

Having different kinds of credit such as automobile loans, credit cards, and mortgage will also help improve your score.

Take note of credit inquiries. Having a lot of inquiries in a short span of time will lower a score. You will get a credit inquiry on your file every time you apply for credit and someone pulls out your record. Do not continue applying if an application has been denied twice because chances are, the result will still be the same. You will just be left with inquiries that are unnecessary for your credit report.

If you notice that there is information in your credit file that does not fit, make clarifications to address the matter. Any kind of derogatory item whether it pertains to you or to another person that will not be corrected will lower your credit score.

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