Having a solid credit score is a product of living a financially responsible life. If you have a low credit score and you have been wondering how to improve your it, then take a few minutes to read the rest of this article because it will give you some simple tips that are the foundation of good credit. The Morning Times reports that this skills should be cultivated and learned at an early stage in life. Here are some tips about what it takes to have a good credit score.
Have a budget
You need to sit determine how much money you have every month and what your financial obligations are. Once you calculate this stick to this budget so, you can pay not only your bills but also save a little amount every month.
Stop Using Your Credits
If yo currently have credit accounts that are maxed out or close to being maxed you need to stop using them and start paying the balances down. If you can pay the balance down to below 50% of the accounts, limit your credit scores will improve dramatically.
Clean Up Your Credit Report
By doing some simple self-credit repair and getting some of the older negative and possibly incorrect information removed from your report you scores should jump up fast. Keep in mind you will not get everything removed but even a getting a few accounts removed will go a long way.
Look at your current credit report
Validate that all the data on the report is valid. If it is not, you can dispute your credit report with the credit reporting agencies or with the creditor directly. With 79 percent of all credit reports containing some error, odds are not very good that your credit report does not contain errors. It is your right to dispute inaccurate, misleading or unverifiable negative items with the credit bureaus.
Do not close old accounts.
Closing your older accounts may, in fact, hurt your credit score, rather than boost it. This is because when you close your older accounts, you may remove previous credit performance. The lender wants to know what your payment history is like. Have you paid everything on time, are you late for anything now, and so on.
Keep your unused credit card accounts.
If you know you are going to be applying for credit of some type shortly, do not close any of your unused credit card accounts. When you close them, you’re reducing your available balance. Don’t open any new accounts before applying for a loan if you can help it because having a short credit history on an account lowers your score because there is no real track record of your payments. Having new accounts will also lower the average age of your credit score.Social tagging: credit > credit score > finances