An impressive credit report score holds a very important role in availing any type of credit including mortgage and car loan among others
. Before applying any loan, it is important that you review your personal credit online. Make sure to eliminate errors and keep the credit report up to date to ensure lower interest rates and better credit terms. Lenders would scrutinize the credit report thoroughly before advancing any loan and hence it becomes imperative to maintain a positive credit report score at all times.
Improving credit score is very much possible if you have the perseverance and discipline to do it. Some of the tips that would help you to enhance your credit report score include the following-
Pay your dues in time: Late payment would leave negative scores in your credit rating. This would not only invite penal interest, but also make it impossible to get loan at low interest rates in future as well. Make sure to pay your installments in time to increase your credit score because higher your score the better would be your credit.
Reduce your debts: As the credit report would have all the details like debts and payment history among others. Maxing out credit cards or using too many credit cards would have a negative impact on your credit score. Creditors would compare the amount of credit you are using against your maximum available credit limit. If you can leave 30% of the available credit limit unused, it would be of help in improving the credit scores.
Keep old credit accounts open: It would help you to increase the credit score. However make sure that it has no outstanding payments as keeping open the paid off accounts would have a positive influence on your credit history. In case you find it difficult to manage your credits prudently, use a check register. It would ensure better control of your finances and streamlining of your budgets.
Regular payment patterns would help you to enter into the good books of the lender who might even agree to waive off the late payment from your credit history thereby retaining your credit score. Typically if you have made a series of timely payments for at least 12 times or so, the lender might choose to let off the delinquencies of the past.
Dispute wrong entries and negatives. In case you find an unfair bill or a wrong entry in your credit report make sure that you dispute it so that you can prevent your credit score plummeting further down.
If you are unable to pay off the bills on time, inform the creditors immediately. This would help you to hammer out a payment arrangement, which might keep off some of these late pay offs from your credit reports. A good credit score is the pointer to a secure future and by tagging along these handy tips you can make sure of a good credit score.