Last Post On : July 28th, 2013 - Sunday
How To Improve Your Credit Score?

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Quick Step To Fix Credit Score

It is important to have a good credit score, as you may not get proper rates for loans and insurance. It is possible to solve your credit score and make repairs to the credit. Even if your credit score is okay, it is still possible to improve it further. Before trying to fix credit score, a person should first known where he stands by getting a free credit report at least once a year from one of the three credit bureaus. A person having a credit score of above 760 is considered to be in a good position and will be able to obtain good rates for any borrowings, but if it is below this figure, it needs some improvement.

Getting a credit card

One way to fix credit score is by getting a credit card, as this can contribute towards a better credit score. Of course, it is not possible for everyone to get a credit card and in this case, the alternative would be to get a secured credit card, where you will need to make a deposit to obtain a credit card for an equivalent amount from the bank. You must select a bank which reports your credit score to all the three bureaus.

Installment loan

You can fix credit score by going in for an installment loan. This shows that you are responsible for payments of mortgages, student loans or any other personal loan. You can take a small personal loan and pay it back in installments. But it is important that the loan is reported to the three credit bureaus, in order to improve your credit score. Try to obtain the loan from a community bank.

Make timely payments

It is also possible to fix credit score by making timely payments on all the loans, such as mortgage, student or any other personal loan that you have availed. Apart from timely payments, it is also possible to improve your credit score to a great extent by paying it off fully. It would also be advantageous if you maintained a huge difference between the used credit and your credit limit, such as maintaining the balance below 40% or 40% on your credit cards. Among the various credit cards that you use, always try to pay up the ones that have the balance closest to the card limits.

Reduce your credit balance

Try to keep the balance on your credit card as low as possible in order to fix credit score and improve it. It may not be possible to pay up the bills completely each month, but if the balances are low, these are also sent to the credit bureaus and can result in improving your credit score in the latest credit statements issued by the credit bureaus.

It is important to keep your credit score as high as possible.  There are several ways by which you can fix credit score and improve it. You must keep a track of your credit reports from the three credit bureaus and limit the balance on your credit cards. Making timely payments can help fix credit score and aid you in obtaining better rates for insurance and other loans.



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