The term "creditworthy" has grown significant these days
. Being creditworthy is very important since every major purchase we make depends whether we have good or bad credit.
Your credit rating is basically the reflection of what is written on your credit report. Your credit report does not directly indicate whether you are a risk, what will tell the lender that is your credit rating.
Having a low rating can hurt your loan options.
It is advisable to be always aware of your standing. Monitor your rating by regularly asking for your credit report from the credit bureaus.
It is better to ask for it from all three since some creditors only submit to one bureau. Check your report and see if there is any incorrect data in any of them. In case there are any errors, make a written dispute to your creditor.
Paying your bills late greatly affects your credit rating. Do not put off paying old bills since this is reflected on your credit report and pulls down your rating.
Also, try to limit your charges since big monthly balances contribute to hurting your scores. Try to limit your charges to 30% of your credit limit. Practice self-control and avoid unnecessary spending at all costs.
If you find yourself unable to pay for some of your bills, you can talk with your creditor to set a schedule of payments, depending on what you can shell out at a given time. This is better than not paying anything at all and can help pull up your rating.
You must always remember that getting your credit rating back on track will take a lot of work, patience, and not to mention self control. Your rating is crucial since most of the big financial moves in your life depend on it.
You must persistently work to get a good rating, you do not want to pay for it dearly in the end.