Do you know that your credit score can determine whether a landlord will approve your rental application or not or how much you will pay for home and auto insurance rates? The lower your credit score, the higher the amount of money you will pay. Most leaders usually analyze credit worthiness to know if the borrower can pay back debts.
Improving your credit score
A lower credit score is an indication that you are unreliable borrower a factor that can dent your effort of getting a loan. So do you have a low credit score and you are looking for ways to improve it? If yes then today you are in the right place because, in the article, we are going to give you tips on the means to improve your credit score.
1. Pay your bills on time
Although this may seem obvious to many, late payment is one of the main factors why people have poor credit score. The negative report that usually appear credit reports is usually. As a result not paying your bills on time. To improve your credit score, ensure that you pay bills on time. If you are in the financial crisis, try as much as possible to make a small payment as opposed to not making payment at all.
2. Don’t close unused account because good history is crucial
Most people are usually fond of closing credit accounts that are dormant. One main factor that many lenders usually consider when evaluating your credit worthiness is the length of time that you have worked with the creditor. If you have a long-term history with the creditor, then you will increase your chances of getting a loan at a lower interest rate. It is, therefore, critical to always maintain your old accounts instead of closing them.
3. Check for error in your credit card
A study that was conducted by Federal Trade Commission found out that one out of four Americans had errors in their credit reports. Errors in credit reports can affect your credit score by a great magnitude. Expert recommends that you should review your credit report regular and correct errors. The failure can include the lender reporting false late payment or account that reportedly went to collection despite the fact that you made your payment on time as well as an account that was opened in your name without your consent or knowledge. Fixing errors on your credit report is one of the best ways to raise your credit score.