7 TIPS FOR IMPROVING YOUR CREDIT
One of the key factors for planning a home purchase is to review your credit score. You can improve your credit rating in several weeks to months. Monitoring your credit report and credit rating is important, especially if you’re considering purchasing a home. Here are seven tips for improving your credit. It’s not about quick fixes, but responsible financial activity over time.
1. Get a credit card. It is important to establish credit history. When used correctly, a credit card can be an effective tool for building credit and documenting its usage. Charge a few budget-conscious purchases each month, and pay the balance off before your due date.
2. Keep your balance low. Try to only charge for items you could pay for out-of-pocket, and use a balance of only 10 percent of your credit limit. You want to show that you have the potential to be loaned money, but you don’t use all of it.
3. Leave paid debts on your report: Paid off debts like car loans show that you have a history of paying your debt on time.
4. Ask to reduce your interest rate on your credit card. If you’re looking to pay off a debt quickly, ask your credit card company to lower your interest rate. Sometimes it is only an effort of a phone call and some time.
5. Know the definition of credit scores. Excellent – 750+, Good 700-749, Fair 650-699, Poor 600-649, Bad – below 600.
6. If you find that your credit history is incorrect, you may need to talk to your creditor and discuss. Obtain names of your contact. Write a follow up letter of dispute to your creditor and credit bureau when inaccurate information is listed after your call. It is always best to have documentation available to send them for reference. Ask them how long it would take for the correction to be made in your credit history.
7. Review your credit score again after the dispute has been resolved or after you made some credit manner changes. See the efforts of your improvement.
