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10 Tips To Improve Your Credit Score (PDF download)

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10 Tips To Improve Your Credit Score


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456


Summary:
These days most of us avail loans to buy a house, set up a business, or buy a car. Many students take loans
to further their education. How soon the loan is sanctioned, the rate of interest, and the amount sanctioned
will all depend on your credit score which is based on your credit report.



Keywords:
credit cards, business credit cards, credit card processing, student credit card, low interest credit cards,
prepaid credit card, free credit card, credit card



Article Body:
These days most of us avail loans to buy a house, set up a business, or buy a car. Many students take loans
to further their education. How soon the loan is sanctioned, the rate of interest, and the amount sanctioned
will all depend on your credit score which is based on your credit report. People with scores of 700 and
more are the beneficiaries of lower interest rates and quick sanctions. Imagine if your score is greater than
700 and another person has a score of 698 then the person with score 698 will have to pay interest that is
higher by one-half percentage point. And, this means over a year a person with a lower score will pay USD
19,000 and more as interest on a loan of say USD 165,000.


A credit score takes into consideration: payment history, current earnings, current debt, length of credit
history, types of credit utilized, and your new credit. If two or more members of your family are earning
then apply for a loan jointly.


You can take a few simple steps and ensure that your credit score is higher than 700.


•Maintain a long healthy credit history. Keep alive your oldest credit card and be sure to pay all bills in time.
Never keep bills pending over a 30 day period. If in a crunch at least pay the minimum charges due.


•Do not have too many credit cards. Learn to say “NO,” to offers of free credit cards. And, maintain a good
credit limit. Avoid using all the available credit on the cards.


•Ensure that the credit report you have is accurate and that there are no errors clerical or otherwise.


•Plan your finance such that it is healthy. Consider debt consolidation.
•Never suddenly close or open accounts. This leads to suspicion that you are trying to manipulate your credit
report.


•If you are having problems speak to your creditors well in advance and work out a stage wise repayment.
Request the creditor to refrain from reporting the late payment.


•Late or delayed payments drive your score down so always pay bills dead on time. Keep a tab on due dates
and ensure that all bills are paid.




Learn all you can about credit reports and scores and keep the criteria in mind while managing your
finances. Maintain the debt-to-credit limit ratio and, if need be take the help of a finance planner. A useful
source to learn about managing credit is: http://www.balancepro.net/services/index.html they provide in
depth coverage on money management, debt management, and credit report review.


Even if advised refrain from filing for bankruptcy. All you need to do is to sit down and curtail expenses,
plan you income-expenditure , and avoid spending what you have not earned.




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posted:5/29/2012
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