Let’s get right to the point.
Your credit score is the most important part of your financial record. In fact, some would argue that it is your financial record. Your credit score is what determines the fate of your future borrowing. It is the result of your financial performance over the years.
It all comes down to your credit score. It’s what determines the kind of loans you will qualify for and the interest rate on those loans. Those with good credit score will, of course, be able to score more loan and pay less interest than the rest. If you plan to deal with lenders in the future, improving your credit score should be your number one priority.
In a recent survey, conducted by the National Foundation for Credit Counseling, around 30 percent of respondents claimed they were embarrassed to admit their credit score, far more than the 12 percent who were embarrassed about their weight.
Well, we’re no diet experts so we can’t help you with the weight problem, but what we can do is to help you improve your credit score. So here it goes:
An important consideration
Before we move on to specific steps for improving your credit score, you need to bear something in mind.
Improving credit score is a lot like weight loss. It’s slow and difficult but, if you keep at it for long enough, you begin to see results. And what glorious results they are!
So anyone who claims to offer quick-fix solutions for improving your credit score is either a fraud or terribly mistake. According to Liz Weston, the author of Your Credit Score, Your Money & What’s At Stake, the best you can hope is seeing improvement in the credit in 30 to 60 days.
Patience is a virtue. And you need lots of it when setting out for a better credit rating.
How to improve your credit score
Here are some of the things you can do to earn an improved credit score:
Check your credit report for errors
Do you have a copy of your credit report in hand? Now cross your fingers and hope for some errors in it which you can remove to improve your credit rating. This is one of the simplest and quickest methods you can improve your credit score.
Not to get your hopes up, but credit reports do have a margin of error. This means you have to go through them extremely carefully and analyze the details of each and every transaction. Make sure that there are no late payments reported by mistake. If there are, take it up with the credit bureau.
Make timely payments
It’s simple. If you want a better credit score, you need to pay your bills on time. Whatever your record has been till now, you need to improve it. Never miss due dates. Many banks allow you to set up payment reminders. They send you a text or email when the payment is due. If possible, set up automatic payments from your account.
Pay off your debts
The amounts of debt you owe have a negative impact on your credit report. If possible, get rid of these debts as early as possible. Do whatever you can to make it happen. If you need to work over-time, so be it. Paying your debt not only improves your credit rating, it’s an extremely rewarding feeling in and of itself.