Saturday, September 25, 2010

Know how to boost your credit score

At a time of financial turmoil when credit is hard to obtain, it is crucial to have your credit score in the best possible shape. There are numerous ways in which you can boost your score if you put in a little effort. It is a major deciding factor when you are trying to apply for loans or mortgages. Following are the few steps that will help you boost credit score fast.

1. Deleting errors from your credit report

This is the fastest possible way to boost your credit score. Credit bureau will send copies of credit report to you across mail if you request it. You must go through the credit report diligently. If you identify errors on your credit report, request the loan officer of the credit bureau to conduct a Rapid Rescore. Credit report errors can be easily removed by writing a simple dispute letter. Sending copies of the paperwork along with the dispute letter that proves the errors will make the credit bureau's task simple and you will obtain results faster.

2. Pay off Bills on Time

This is another most important way to boost credit score. Customers should make a habit of paying off bills on time. Late payment or overdue of the bills have adverse affect on the credit rating of an individual. It affects their payment history and eventually has negative impact on the amount of loan he wishes to borrow.

3. Don’t Pay Down All Your Debts

Your credit rating is an expression of how well you can manage your debt. Paying off all revolving debt at the same time leaves you with zero balance. Always pay off the urgent, oldest debt first and leave the balance to manage it well. This way you can maintain your credit score in a better position.

4. Don't Close Accounts

It will be easy to boost your credit score if you do not close all the existing account. It reflects a better financial position if your account is kept open for a long period of time with no negative reports. The ideal balance is suggested to be 30% of your overall credit limit by the credit experts.

5. Don’t Obtain New Credit

In order to boost your credit score you must be watchful about acquiring no new credit unless it is of utmost requirement. Your credit report undergoes an enquiry every time you ask for a new credit from moneylenders. This slightly drops your credit score. If you wish to obtain more credit other than housing, college or transportation expenses it is a good idea to ask for more credit limit on your existing credit cards rather than applying for a fresh credit.


Debt Settlement Law said...

Debt snowballing is also a good idea to overcome the huge burden.

Emily said...

Great post John. This is as close as one could get to a "How To" about credit. Looking forward to reading more.

Emily - Fellow B.C. user

elpi said...

Thanks for your informative post john,Debt snowballing i never try that steps.

credit card identity theft said...

Yes, i completely agree with your post. These are really useful points for increasing your credit score.

rebuild credit credit cards said...

This post is really nice and effective tips for high credit score. Thanks for sharing the post. Keep posting like this.

Receivable Financing said...

Paying bills on time definitely increase you credit score. It also helps to build your reputation as a responsible creditor. In the business world you have to make you name as clean as possible to build strong competition and be powerful in business terms. Credits are normally done to increase account receivable, production and for financing innovation for better service. It is a liability that turns into greater number of assets.