5 Ways to Improve Credit Score

An interesting news published at CNN on September 21, 2005 on how to improve credit score catched my attention today. It may be old, but the value of the information listed on the site provides information to the general public about the value of credit score in relation affecting your ability to apply for loans and other benefits such as special promotion for service subscriptions.

So I will be adding another set of tips that helps you in improving your credit score based on the article published at CNN.

5 Ways to Boost Your Credit Score

• Pay your bills on time. Delinquent payments can have a major negative impact on your score and the longer you pay your bills on time, the better your score. For example, someone with an average credit rating of 707 can raise their score by as much as 20 points by paying all their bills on time for one month.
• Keep balances low on credit cards. High outstanding debt can affect your score. Maxing out your credit cards could lower your average score by as much as 70 points.
• Don't open a number of new credit cards that you don't need. New accounts will lower your average account age, which could actually lower your score by up to 10 points.
• Have credit cards - but manage them responsibly. In general, having credit cards and installment loans (and making timely payments) will raise your score. Someone with no credit cards, for example, tends to be higher risk than someone who has managed credit cards responsibly.
• Closing an account doesn't make it go away. A closed account will still show up on your credit report and may be factored into the score.

Tips to Improve Your Credit Score

Reading on the credit score news today , it shows that there are varied reasons why an individual with virtually no outstanding balance due on another company can still be denied for possible loan or will be awarded low credit limit on credit card spending. There are several reasons though and most are listed at bizonline. Read on the news for more information.

But I would like to take note some of the most interesting credit score facts and truth about improving bad credit score through increasing financial discipline as explained by Adam Aiken of bizonline.

TIPS TO IMPROVE YOUR CREDIT SCORE

• Ensure you are registered on the electoral roll.
• If possible, make more than the minimum payments on credit agreements every month. You will benefit by paying back your debt quicker and paying less in interest, and you will build a positive payment history.
• If you have paid any county court judgments, make sure the settlements are recorded on your credit file. If not, contact the court to get confirmation details and inform the credit reference agencies.
• If you have been refused credit, obtain a copy of your credit rating. But DO NOT carry on applying elsewhere. Each search by a lender will leave a 'footprint' on your credit file, and this may look as though you are over-stretching yourself financially.
• If your circumstances have changed then say so. You can place a notice of correction on your credit file, explaining your financial situation, which lenders will review when accessing any credit applications you make. For example, you could place a notice of correction if you were made redundant or have recently been divorced and have fallen behind on credit repayments.
• Avoid carrying a balance that is more than 30pc of your credit limit (creditors may view it as excessive debt and that you may not be able to keep up with repayments).