A friend of mine just bought a brand new car. There’s really nothing special about buying a new car, but there is something very interesting about this very case, that drew my attention.
The guy I’m talking about is a modest film making student. He works part-time at my favorite local coffee-shop, doesn’t have rich parents and generally is a simple person, except of being a sharp and responsible kid.
Anyway I was very surprised when I saw his new truck at the parking lot and found out the interest rate of his car loan. It was like if he had almost perfect credit score. He didn’t tell the secret how he managed to do that, but this made me wonder about how a person can boost his/her credit score.
It appears that improving one’s credit history is not a rocket science. Although it requires some knowledge, the main challenges for most of the folks are personal responsibility, consistency and being proactive. So, if you need to make your credit score higher, read carefully and act.
First of all, be informed about every detail of your credit history and check for possible errors which can negatively affect your score.
There are two main credit reporting agencies – Equifax and TransUnion. They gather all information regarding your financial activities to analyze your ability to pay off a loan. But it’s been discovered, that over 70% of credit histories contain errors. A utility bill or car loan you paid on time actually may be indicated as a late payment. As a result, these errors sink your credit score. To fix the situation, send to the reporting agency a copy of the documents which prove that you have no late payments. By the federal law they have to correct the errors.
Speaking about on time payments – it’s proven fact that if you pay them on time without even tiniest delay, in six months it will result in your credit score improvement. So another important lesson – pay your bills on time. If you are very busy, set an automated bill payment with your bank so you wouldn’t miss any due dates. Other words, be responsible paying your bills and in six months you will see the results.
One of the most effective tools that will boost your credit score is keeping your credit card balance below credit limits. It’s recommended using no more than 30% of your credit limit as your balance. The reporting agency will notice paying what you owe back and at the same time moderation in your purchases. This is the picture of a perfect customer who deserves a higher credit score.
Borrowing from one lender for paying another is a taboo. Remember, this practice will kill your credit score and it may be difficult for you even to get a personal loan from PersonalMoneyService.
Another useful tool will be spreading your debt. It’s preferable to have over the time a number of small credit accounts than one big balance on one account. But remember that establishing new credit history by opening new various credit accounts will not help.
Switching accounts will affect negatively for personal credit history. If you are ready to get rid of extra credit accounts, stay with the older ones. The longer credit history the better.
Note that closing an account does not eliminate bad credit history from it.
Often people damage their personal credit score when doing mortgage shopping without a mortgage broker. In this situation each lendersends a credit history inquiry to the agency. The agency sees the multiple inquiries and interprets this as if a person is trying to get multiple loans at the same time. The consequence is obvious – the credit score goes down.
To avoid this situation, use services of a mortgage broker who will send an inquiry only once. Then having your data, the broker will search for the mortgage that fits you the best, without extra inquiries.
So there is an affirmative answer to the question if it’s possible to boost one’s credit score easily.
Generally speaking, personal responsibility in financial matters is what creditors and credit history agencies like. Using credit cards with moderation and paying back what you borrowed on time is the key to improving credit history. And of course keeping abreast of information of your personal credit history is definitely a plus.
5 Important Web Design Considerations to Make for Better SEO
Ever since the birth of search engines, practices in optimising websites for better search rankings have changed considerably. Where it...
4 Reasons For Your Teeth Becoming Sensitive
Having sensitive teeth can be a common issue for many, but it can also be a sign that you have...
How To Keep Your Business Clean & Sanitised
If your business offers any kind of public-facing services, then you will likely be thinking a lot more about the...
The Impact Of Covid-19 on Commercial Property
The lives of people all over the world have been completely altered as a result of Covid-19, with businesses struggling...
3 Of The Best Foods and Drinks To Aid Your Sleep
Getting a good night’s sleep is hugely important for your overall health and wellbeing. Studies have shown that having a...
Why You Should Consider Volunteering
Volunteering has many benefits both to you, your community, and your CV. Whether you do it alone, or with a...
Investigating The Important Factors In Legal Software Testing
Fulfilling the digital transformation objectives with QA testing services has become an important phase for all industry verticals. Today, every...
Multiply Your Magento Store’s Sales With Affiliate Program
Are you struggling to boost your sales and expand your customer base due to the significant increase in marketing expenses?...
How COVID-19 Is Changing Plastic Surgery
There’s been changes to practically everything in our everyday lives, including industries such as plastic surgery. With practices having to...
Benefits and Drawbacks Of Getting A Taxi and Renting A Car
If you’re planning a vacation or business trip, you must decide whether or not to rent a car ahead of...
8 Killer Tips to Make Your Portfolio Website Standout
A portfolio website is one of the easiest and most straightforward ways to showcase your work. Although you have a...
3 Reasons You Need A Mobile-Responsive Email Marketing Platform
Repeat after me. Creating email interfaces with mobile-first ethos and UI is key to the success of email marketing campaigns....
Mother and Nature Active Maternity Wear, How It All Started
5 months pregnant and very happy about it, not much to complain about. Everything was going ok (famous last words). ...
How To Make Sure Your Toddler Has A Balanced Diet
As your baby grows into a toddler, they go through a period of intense mental and physical development, as their...
The Top 3 Vitamins and Minerals To Support Your Fitness Goals
You can spend hours in the gym, but without fuelling your body properly, it will be hard to see the...
- Tech6 years ago
Creating An e-Commerce Website
- Tech6 years ago
Design Template Guidelines For Mobile Apps
- Business5 years ago
The Key Types Of Brochure Printing Services
- Travel8 years ago
Who Else Wants Also Nfl Hat
- General5 years ago
Kobe Bryant With His Unique Nba Jerseys
- Tech6 years ago
Climb Google Using These Checklists
- Tech6 years ago
Why Small Businesses Can't Ignore Mobile Technology
- Health7 years ago
Health Supplements For Sports Activities Nutrition