subject: Simple 5 Tips To Boost Your Credit [print this page] Most individuals in debt crisis often look for credit score improvement techniques as a primal criterion when looking for debt relief options. One usually opts for bankruptcy as a last option due to the fact that it hampers credit card report for nearly 10 years. The effect of debt settlement or debt consolidation stays just for a specified time period. However the question that arises is why do you need a positive credit card report in the first place?
The credit report actually carries a credit score that measures the ratio of your repayment to that which you originally owed. The information is helpful in determining your financial state and your ability to qualify for further loans. If you have a positive credit report you will qualify for more loans and better interest rates.
If you want to build your credit history, it is not possible to do it overnight. However there are simple tips you can follow in order to build a positive credit history. Here are 5 simple steps you can take:
1.Make Timely Payments: When you pay your bills on time and continue to do so over a long period your credit score obtains a solid foundation. If applies to utility bills, phone bills and rent apart from those on credit card, mortgage, or car loans. With such loans you need to be careful not to get into late or missed payment as it is likely to affect your scores negatively.
2.Review Your Credit Report: If you want to apply for an auto loan or a home mortgage loan make sure that you have clear reports. You can brighten up your state by reviewing your report once in a while to maintain the positive flow. If you have any complications or negative markings resolve them before you apply for the loan. You need to keep in mind that you can obtain a loan only when the lender is satisfied with your credit report.
3.Do not Bounce Checks: Many people have the idea that bouncing a check does not have any relation with credit history. On the contrary it can prove as a bigger concern if not handled carefully. Your overdraft may not show up on your credit report but most banks have their own system to track customers with bad financial history. Thus apart from the overdraft fee your credit report will also be affected due to bounced checks.
4.Avoid closing Older Accounts: Credit score also depends upon the length of credit history. Therefore it is always a better idea to keep your older accounts open rather than closing them down. If you have more open accounts it maybe unmanageable at times. However closing them down can hurt your score more. It is therefore better to keep them open and carry forward the balance just like that.
5.Open any new accounts after careful consideration: You may not consider adding new credit as an important factor in lowering your credit score. However it does affect it to a great extent.
Avoid opening any new credit accounts that you do not intend to use. Taking a new credit just to get that additional 10% off on new retail store card is of not much significance. Instead of spending a huge sum on multiple accounts you can save them to pay off other debts.
Do not wait until your financial conditions are weakened and you have to look for a debt relief program. Manage them right from the beginning so that you can stay away from any serious problems later.
These five steps will offer you a start off to credit score improvements. A systematic handling of these processes will help you to build up a positive report that would enable you for further loans in the long run.
