How To Improve Your Credit Score the Easy Way
Many people tend to neglect the fact that credit scores are very
important in today's society. This simple three-digit number will
significantly affect how you live your life and also your financial
By having a good credit score, you will be able to have access to the
best loan and credit card deals available today. It will also be an
important factor when you want to get a phone line hooked up in your
home. Also, some companies prefer to hire people with good credit scores.
Now that you know how important a credit score is, you need to know what
credit score is all about and how you can have a good credit score or at
least improve your credit score.
Firstly, a credit score is a three-digit number that creditors look at to
determine if you are credit worthy. What this means is that this is what
most creditors base upon if you will be approved for your loan or credit
card application. This will tell them that you will likely pay the loan
or the credit card bills on or before the due date.
If you don’t pay your bills on time, you will have a bad credit score or
credit rating. This is because creditors will report to credit reporting
agencies about your activities regarding how you pay your bills. This
will serve as a record of your paying habits. The credit report will then
be available to other creditors you try to borrow money from or try to
apply for a credit card from.
If you have a bad credit history, the chances of you getting that
application approved will be slim. Or, you can get a loan or credit card
application approved but it will usually contain a high interest rate
because you are deemed too risky to lend money to.
This is the reason why you need to improve your credit score in order to
have access to the best loan and credit card deals available. Not only
that, it will be easier for you to get a job, rent an apartment or even
get a phone line hooked up because companies that offer these things will
be sure that you are credible or is credit worthy.
The first thing you have to do when you try to improve your credit score
is by cutting of the sources of negative credit reports about you. To do
this, you need to pay your previous delinquencies or pay off your overdue
loans. This will not significantly improve your credit score but it is a
good step in cutting off the negative reports that will make your credit
score much worse than it already is.
Now that you eliminated the negative sources of the reports, the next
step is to improve your credit score. There are several ways to do this.
The first one is request for a copy of your credit report from the three
major credit reporting agencies. By doing this, you will be able to know
about your credit status and also know whether there are any errors in
it. For example, if the credit report contains an unpaid debt that you
have previously paid before, send a letter containing a request to fix it
and also send a copy of the proof that you already paid the debt in full.
Errors like this can and will significantly lower your credit rating or
The best thing you can do to improve your credit score is to pay your
bills on time. By doing this, you will make a positive credit report and
therefore, will result in higher credit score.
Always remember that it is you who will determine whether you get a good
credit score or not. By paying your obligations on time, you will be able
to improve your credit score.