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Improve Credit Rating
Having a good credit score has perhaps never been more important than it is today. Companies are taking a look at people’s credit for the usual things like when applying for a loan, but now it has spread to almost any type of applications including many times when you are applying for a job. Imagine having all the skills and qualifications you need only to be turned down for the job because of a lower credit score than they believe is acceptable.
What affects your credit score?
The two biggest factors in determining your credit score are the number of late payments that you have and the amount of debt you owe compared to your credit available. Let’s take the first one. A payment will affect your score if it is more than 30 days late. Your score will suffer more if the payment is 60 days late and then 90 days late. If a payment goes to collection then you will see a huge drop in the score as well, it is basically a step by step process. So how do you improve credit ratings? The simplest step is to pay on time. Never let a payment be posted more than 30 days late.
The second factor is a little harder to understand. Credit bureaus determine a big portion of your score by weighing how much money you owe as compared to how much available credit you have. The simplest way to understand it is this; if a person has a credit limit on a credit card of a certain amount, the closer you are to the maximum amount on the card, the worse your score will be. So how do we use this to improve credit ratings? Keep the balance of your credit cards to at least 50% of your credit limit. A maximum of 35% would be even better it possible. Our blogs and forums at Comprehensive Debt Management offer great advice on keeping your balance low.
In the big picture you can improve credit ratings by practicing the steps above but just as importantly is changing the factors that caused the problems to begin with. Getting a better score will not last otherwise and there has never been a more important time for your credit rating to shine.
Credit Ratings - Final Thoughts
One of the most important things you can do is to check your credit rating, we would normally advice this to anyone, however this is especially applicable to people with debt problems, knowing your credit ratings will help you to see what your lenders or potential lenders see. It is better to be armed with information!
Unfortunately there is no such thing as a free credit rating check (even though the banner below says otherwise!!) but this is the cheapest credit rating check we could find! Further more you can stop the check after one month (the first month is free).
If you decide to join them or stay for a month, get the most out from your time. Look out for any irregularities to your statement. Make sure there are no identity theft issues Please click on the sponsors on the bototm of the page under sponsored links so we will get some money (if you prefer us not to shamelessly ask for money then tell us!)
This website is a FREE Resource for you. All advice given are personal opinions, We always encourage our readers to seek professional advice, and their advice ALWAYS supersedes ours. Please click on some adds as we are funded through this!
