Thursday, July 28, 2011

How To Improve Credit Scores

1)Order a copy of the credit report, review it carefully and correct any significant errors.
2)Pay bills on time.
3)If there is a questionable credit history, they could open a few new accounts and use them responsibly, paying them off on time.
4)Avoid opening accounts without intention of using them. Having five or six of the same credit card type (e.g., Visa), is not favourable.
5)Having a credit card or instalment loan can help boost a credit score, as long as the balance is not too high.
6)Keep balance low in relation to available credit. If the credit limit is $10,000, keeping the balance below $2,500 (or 25 per cent of the limit) will improve the score. Balances of more than $7,500 (or 75 per cent of the limit) will decrease the score. Going over the limit has an even more negative effect.
7)Pay off credit card debt instead of moving it around to lower rate cards. Moving balances to other credit cards (i.e., “balance transfer”) and closing an old account can hurt the score.

2 comments:

  1. From your article how to increase the CIBIL Score?. I got my car loan and house lone easily...
    thanks

    ReplyDelete
  2. Paying bills on time and buying what's only necessary is the key in improving credit score.

    Vishenda
    Bad Credit Credit Cards

    ReplyDelete