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Tue 10 January 2017

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4 Tips For Improving And Protecting Your Credit Rating

Your individual credit rating will determine how easily you can acquire credit, how much credit you can obtain and even what interest rate you're going to pay for the credit that you get. In fact, snabblÄn improving your credit rating by just a couple of points can mean the difference between getting a credit line or not, and can save you hundreds or even thousands of dollars in interest payments over the long term.

Here are a few simple tips that can help you to improve and protect your credit rating. Please keep in mind that none of these are quick fixes nor gauranteed to have immediate results. In fact, most of them are long term practices to follow for protecting and improving your credit score.

1) Pay your bills on time - this should be a given, and it can become hard during financial hardships, but the fact is that late payments can be noted to your credit rating and will drag your score down.

2) Avoid maxing out your credit cards - part of your credit score is calculated based on the amount of available credit you currently have, including the difference between how much credit is available to you on your credit cards vs. how much of a balance you have on those same cards.

It's good to carry a small balance on your credit cards from month to month, provided you make your monthly payments on time because that shows a good payment history, but for improving your credit rating, keeping your carry-over balances to a minimum can have a major impact on your actual score.

3) Keep your existing credit lines open - this is especially true with credit card accounts. Some people think by reducing the number of cards they have they are helping their credit score, but the truth is it's far better to have those cards active, and to even have a very small balance due on them each month. This builds a longer history of positive action and can help your credit rating.

4) Monitor your credit report - At least once per year you should get a copy of your credit report from all 3 of the major reporting agencies and check that all of the information contained in your report, including your identifying information--not just your credit history--is completely accurate.

About the Author You have a lot of control over your own credit rating, from being a responsible borrower to being a dilligent fact checker, here are a few quick tips to help you along.

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