credit rating

Credit score is not something that you can push up instantly. It takes time to build up the record. The credit rating is made taking into account years of your past actions and present as well. Here are the best ways to improve your credit rating, if you do not have one yet.

Have control on credit card balances

The amount of revolving credit you have compared to how much you are using is a very important factor in credit rating. It is best if the ratio is 30% or lower. For a good credit score you need to pay off your balances and keep it as low as possible.

Get rid of nuisance balances

Nuisance balances are the small balances you have on different credit cards. You need to pay those off in order to boost your credit score. Instead of using so many credit cards, use one or two.

Keep old debt which were on good standing on your report

It is wrong to assume that old debt in your credit report is bad. If you get your car loan paid off, for example, don’t remove the records from your credit report. Record of good debts that you’d handled well and paid off has positive effect on your credit score. Bad debts affect your credit report negatively; however, most records are disappear automatically after seven years.

Pay your bills on time

Many people fail to pay their bills on time. You need to take this matter seriously and change your habit if you are one of those people. Your credit score will go up if you pay all your bills on time.

These are some right moves you can make to increase your credit score. You also need to be consistent with these approaches. Within a short time you will see that your credit score is getting better.

The best ways to improve your credit rating

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