How To Improve Your Credit Score
As a consumer, you are interested in purchasing a large dollar item such as a house or a car. To do this, you will need to get a loan to cover the price of it then make payments towards it. Maintaining your credit rating will ensure that you are prepared to apply for financing when you find something that you want. Here are a few ways to do this.
Pay Your Bills When They Are Due
There are times in your life when you might struggle with your finances. However, putting aside your debts and holding them past the due date can harm your credit rating. If you find yourself facing this issue, find ways to remedy the situation and make some type of payment. If you have a sudden hospital stay, consider applying for an emergency medical loan. For other invoices, contact the company who issues it and make plans to pay something against it. Many organizations will be willing to work with you so you can afford the expense. Staying ahead of your expenses before they overwhelm you will keep your rate high.
Evaluate Your Credit Report
Another way to protect your credit rating is to monitor it frequently to ensure that what is listed there is legitimate. This allows you to remedy any issues that you find before it harms your chance of getting financing. If you do have debt fall past due and pay it off, make certain that it is eliminated from the list. Contact the bureau responsible for your report and inform them of the error. You will be required to present proof that this has been paid. It may take some time for it to disappear, but it should raise your number once it does.
Request an Increase
Although you have your overdue debt paid off, your credit rating can still be lower than you would like. One way to lift it higher is to contact your credit card company and ask them to increase the balance on your card. While this may seem counterproductive to you, it actually helps more than you realize. When you make your request and it is approved, the difference raises your credit utilization. It does require that you keep your balance the same. These figures are passed onto the bureau who oversees your rate and they make the adjustment to your account. This simple process can help your financial situation in the long run.
Ask For Payments To Be Reported
Credit organizations look at more than your credit cards and any loans you may have with the bank. They also take into consideration payments that you make for rent and utilities. These charges can affect your rating drastically and make it a challenge to get additional financing. They can also help if you request the electric, gas, or water company as well as your landlord to report to the bureau. This positive interaction can increase the number of your rating and make it a simple process to get the lending that you need.