Improving your credit score should begin with you. Yes, you can do a lot to get a better rating. On this post, let us take a look at four things that you can do on your own which can help improve your personal credit.
1. Ask for a higher credit limit. Credit utilization makes up of your 30% FICO score. How much of your credit line you use can have a significant effect on your final score. The key is to keep your credit limit usage as low as possible. One way to do that is of course, to keep your credit card charges minimal.
You can also request your creditor to raise your current limit. However, before you call up your issuer to make that request, see to it that you have a good record to boot. Do your research too. Some credit card companies will not increase your credit line if you have just opened the account in the last 12 months or if you have just been granted a raise within the last six months.
2. Pay your debts on time. Although this step is quite obvious, some people do not take it as seriously as they should. Payment history makes up 35%, the largest factor in the FICO score so if you’re in the habit of paying late, even if it’s just one day of delay, your credit score will surely suffer. Even occasional late payments can have a negative effect in your total rating so if you’re after an excellent rating, see to it that you don’t miss a single due date in all your accounts.
3. Do not send multiple credit applications. Each time you send an application to a lending company or a credit card company, your credit reports will be pulled out. Each inquiry can lower your score. Thus, submitting multiple credit applications to different creditors at once can badly hurt your current rating.
Furthermore, all inquiries made will be reflected in your report so a creditor can see all applications you’ve made to other creditors. Such a move can send a negative impression to a potential creditor. Your purpose for getting a loan or a credit card may be questioned which can result to rejection.
4. Review your credit report regularly. Order a copy of your credit report from the three major credit bureaus at least twice a year or before submitting a credit application to make sure that it is free from errors. Take note that misinformation, unauthorized charges, and other wrong details can lower your credit rating. Correcting these errors at once can enable you to raise your credit score instantly.
Consumers are entitled to one free report each year from the three bureaus (Experian, Equifax, TransUnion) simply by making the request through Annualcreditreport.com. Remember to order your free report from Annualcreditreport.com, the only resource authorized by the government.
If you do find errors, send a credit dispute letter to the bureau that issued your report to have them removed.
About the Author:
Suzy Vanstrusen is a credit analyst and a writer on the website EZCreditRepairSolutions.com. She has been providing consumers with tips and wise information about credit repair as well as helping you out more with your bad credit loans. Copyright © 2011