The Finance Blogger

Steps to a Better Credit Rating

Steps to a Better Credit RatingAn excellent credit rating can save you thousands of dollars when it comes to applying for a mortgage or loan, it can help you get a job in some cases and even be approved to rent an apartment or house. Landlords, utility companies, employers as well as lenders routinely check credit ratings. They want to determine what kind of person you are and whether you are a good risk or not.

Someone with a lower credit rating due to huge debt or chronic late payments may be shunned by these organizations. They prefer other consumers who are higher on the list for credit ratings. It can take up to 18 months to begin improving your rating. Start now on the following steps to a better credit rating and increased savings!

Steps to a Better Credit Rating

Open a Credit Card – If you do not have a credit card now, apply for a low limit card. Use it sparingly. This will demonstrate that you can manage your credit limit. Always pay off the balance in full every month.

Always Pay the Balance in Full – If you have credit cards always pay the balance in full each month and never miss a payment even by one day. If you cannot meet this requirement, then do not make purchases that will place you in this position of carrying a balance on your card. The interest rate is very high, 21%, and it will impact your credit rating negatively.

Pay off Large Purchases Early

It will look great on your credit report if you can pay off a large purchase early. This is the reputation you want to have with lenders who issue credit. They can not only depend on you to repay the loan, but you will repay it before the due date!

Pay your Rent / Loans / Credit Cards / Utilities on Time – Our monthly expenses are sometimes hard to meet, however this sends alarm bells if you are late on any of these payments. When these companies check your credit report and find out you are late on payments, they will not be inclined to do business with you. Never miss a monthly payment of any kind even by one day.

Know Your Credit rating – Find out what your rating is today so that you can deal with the specific issues that are causing a lower rating. Focus on these now since it could take up to 18 months to see improvement on your rating.

These are the best Steps to a Better Credit Rating that you can follow. Get started now to improve your credit rating and save money.

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