Wednesday, 25 June 2014

How to Improve your Credit Score


How to Improve your Credit Score

If you are suffering with bad credit there are things that you can do to improve your credit score. You may then wonder how to improve your credit score. Here we will show you some helpful tips for how to improve your credit score.

How to Improve your Credit Score
improve your credit score
 

1. You will need to get a copy of your credit reports as you are not able to improve your credit score without knowing what it is that you need to work on. Your credit report will include a list of the accounts that are damaging your credit score. You should review the accounts that need to be improved.

2. If your credit report contains any errors then you should dispute these errors so that they are removed. You will need to write to the credit bureau or the creditor that has listed the account on your credit report and ask them to remove the error. Errors are able to severely damage your credit score so they should always be questioned.

3.  You need to avoid using your credit card to make new purchases as this will raise your credit utilization that is the ratio between your credit card balances and the credit limit you have. The higher that your balances are then the more your credit score will be effected. You need to reduce the credit card balance as this will improve your credit score.

4. Your credit score is made up from 35% of your payment history. Your credit score is then hurt when you are behind on your payments. If you are able to, you need to pay off these past due balances.

5. You should avoid making new applications for credit as even credit enquiries are able to hurt your credit score. Also opening a new credit account will lower your average credit age which will also damage your credit score.

6. You will be tempted to close the credit card accounts but before you do this you need to make sure that this will not negatively affect credit. The accounts that balance on should be left open and these will need to be paid off.

7. You should contact your credit card issuer to improve your credit score as they are able to help you. There are credit card issuers that have temporary hardship programs that will reduce the monthly payments until you are able to get back on your feet.

8. 30% of your credit score is the amount of your debt. Your credit situation will only improve once you start paying off your debts. You can opt in selling off some of your items if you do not have the money on hand.

9. There are help aids out there to help you to improve your credit score like the credit counselling agencies. Getting professional help can aid in prioritizing what needs to be done and how it can be.

10. When you are on the road to improve your credit score you will need to be patient as it will take time to improve it.

It is then possible to improve your credit score but it will take time to do so.

SureSwipe is a South African credit provider for merchants that offer free reporting for transactions processed each day.

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