Free Credit Report - 3 Ways To Improve Your Credit Score Using A
Free Report Online
The majority of the population is not in a position to pay cash
for home and automobiles. Hence, when making a large purchase,
most people must take advantage of financing options. Financing,
or obtaining credit, makes it possible to comfortably afford a
home, automobile, etc. However, financing does come with
limitations. If you have good credit, your finance options are
many. On the other hand, if your credit needs improving, you may
be unable to obtain good rates when choosing to finance
merchandise.
Advantages of Maintaining a Good Credit
Sadly, many consumers underestimate the importance of
maintaining good credit. Secondly, some people fail to regularly
monitor their credit reports and credit scores. Credit is very
important. While it is feasible to obtain financing with bad
credit, you will likely receive higher rates and undesirable
loan terms.
Before applying for any type of credit, take time to review your
personal credit report online. This way, you are knowledgeable
of your credit standing. In addition, you can take steps to
improve rating. Here are three tips on how to improve credit
rating and boost your credit score.
Pay Creditors on Time
Paying bills late is extremely damaging to your credit report.
If a creditor receives your payments one day past the due date,
they have the right to increase your interest rate. Moreover,
other creditors may also increase your credit card interest
rates if you pay another account late.
Making timely payments will add points to your credit score. The
higher your score, the better your credit. On the flip side,
continually paying bills late will be revealed on your report,
and decrease your overall credit score.
Reduce Debt to Income Ratio
Your online credit report will include all pertinent
information, including how much debt you owe. Having an
excessive amount of debts will also lower your credit score.
Rule of thumb: the more available credit you have, the better.
This indicates self-control and the ability to use credit
wisely. On the other hand, if you have several maxed out credit
cards, future lenders may be less willing to grant you
additional credit.
Keep Old Credit Accounts Open
Many assume that closing old or paid accounts will increase
their credit score. However, this maneuver does the opposite.
Again, available credit is good for your credit score. If you
pay off a credit card, and close the account, the credit is no
longer available. Instead, keep paid off accounts opened. If you
are determined to get rid of a few credit cards, cancel newer or
recently opened accounts.