Improving Your Credit Score

Your credit score can have a very big impact on your life. There's a good chance that if you are visiting our site, you have found this out the hard way. You went to go apply for a loan, but you were denied because your credit rating was too low. While you can use our site to get a loan in the meantime, you best course of action is to try and work on your credit score at the same time. That way, if you need a loan in the future, you won't have to worry about being rejected because of your credit score. Below are some simple tips to help get you started. Remember that everyone is different, and not all of these things will apply to you. You need to look at your own credit file and see which areas need to be worked on in order to improve your score.

One of the most common causes of a low credit score is poor credit card management. Your credit cards play a large role in determining your credit score, so you need to take good care of them. First of all, if you don't have a credit card, you are going to want to get one. Using a credit card responsibly adds to your credit score, and you can't do that if you don't have one. Once you have a credit card, make sure you are using it right. You don't want to spend to your limit each month, but you also don't want to keep your card hidden in the back of your wallet. Try to keep your credit card utilization (the ratio of money spent versus credit limit for all of your cards combined) to between 30 and 70 percent. If you can do this each month, while also making your payments on time, your credit cards will be a big boon for your credit report.

Another common factor for poor credit ratings is debt. If you owe money on loans or your bills, it is going to bring your score down. Credit ratings are a measure of your financial responsibility, and if you owe a lot of money, it doesn't look good for you. You will want to work on reducing that debt as much as you can over the coming months and years. It may take a while to pay it down, but even increasing your monthly payments by just a little bit can go a long way. The faster that you can remove debt from the equation, the faster your score will rise.

The last major factor is how good you are with paying things on time. If you are late with a payment, or worse, miss a payment altogether, then your score is going to be negatively impacted. A single missed payment can drag down your score for months or even years if you are not careful. To keep this from happening, make sure you have planned out your money for the month to ensure that you will have enough to meet your payments. Also write down on a calendar when the payments are due so that you don't forget. If you already have a missed payment on your record, really the only thing you can do is wait. Just keep making your new payments on time, and eventually all of those positive on-time payments will outweigh the missed one.