Improve Your Credit Report the Easy Way
Having a good credit report is worth more than you think. Our quality of living revolves around having a good credit score. Your report will determine the amount of interest you pay on each loan or credit card and whether you even get approved for financing in the first place.
Your report can also influence your insurance rate or if you get an application of employment or a rental application accepted – all of this could be influenced by your consumers report and the score that it reflects, so it is very beneficial for you to improve your credit report as it can bring about many benefits for you.
On time bill paying
This is no surprise to most as one of the most important aspects of bullet-proofing your credit report. 30% of your report is based on your payment history so if you always pay your bills by their due date, you will score well in this area. Just missing one payment on any bill will cause your score to drop so it’s just not worth it if you want to have a good credit score.
If you can, set up some kind of schedule on your calendar and write when bills and time payments are due a few days before they are actually due. Then make it a habit to review your calendar every day so you can see when payments need to be made.
Keep a low debt ratio
You can improve your credit report by keeping your debt ratio low, as it counts 30% towards a good score. Your debt ratio is the amount of debt you owe in comparison to the amount of debt you first borrowed, or in the case of a credit card, how much of the credit limit you have used on it.
The closer the debt figure is to the amount originally borrowed or your credit limit, the lower you score in this area of your credit report. So if you have a credit card with a limit of $1,000 and you have maxed it out, your score will be lowered. However, if you can pay some money into it, so that you’re only using 50% of the limit, your score increases significantly.
Keep 3 forms of credit open for up to twelve months
Credit bureaus like seeing you use your credit for at least twelve months. The rule of thumb is to have at least three forms of credit available to use. You can do this with a loan, credit card or a department store card.
They also want to see you use your card each month actively and pay the minimum monthly payment at least.
Repairing your credit is very attainable and by following these suggestions you will improve your credit report so that you can enjoy the benefits it will bring.
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