A good credit score is very important. Our credit scores are checked whenever we apply for a loan. Both the amount that will be lent and the interest rate that will be charged are greatly affected by the scores we have. But this is an obvious place were the credit score will matter. However, there are other areas in our life where the credit score have an influence. Some of these areas are when a person goes to get insurance or to get an apartment. Even at your work place your credit score is checked to see if you can be employed in the firm or promoted to a certain position of responsibility.
Due to these factors improving the score will be very helpful. Some of the common steps to a good score are given below.
- You must try to make payment on time always. If you are going to be late for your payment then you should make it a point to pre inform your creditor so that you can get an extension. Here it will not be marked as late payment on your credit report.
- You must review your report at least once a year. You can get a free copy of your credit report once in a year. If there are any incorrect negative items you must dispute them with the credit bureau. After an investigation if the claim is found to be valid it will be removed from the report.
- It is always better to keep lesser number credit cards. Here try to pay off most of the credit cards, highest interest first.
- Call up the credit company and ask them to reduce the credit limit on your account.