Before we learn some handy tips to improve credit rating, let us find out how to read your credit score. The very first thing you need to do is get in touch with well-known credit bureaus such as Equifax and TransUnion. You can avail your report on the internet by visiting the websites of the credit bureaus sites or you can get it by contacting through phone. Typically, scores fall in the range of 350 to 880. If your rating falls in the range of 600 to 750, then your score is good. If it is below 600, the score is poor.
Those people who fall in the poor category of the credit rating find it very difficult to qualify for loans. Even if they get a loan, they will have to pay high interest rates. These days it is very important to apply for loans to fulfill your dreams like buying a car or home. If you have got a good rating, chances of getting a good loan with attractive interest rates is higher. If you have gotten a poor credit rating, you should immediately make efforts to improve it.
Here are some essential tips on improving your credit rating:
1. Go through your credit reports meticulously and look for errors. Some agencies do charge their customers wrongly and since it is your job to find it and repair it. If you find any error, you need to approach the credit bureau and make them know the errors you have found. When you approach, always attach a copy of your credit report and make sure you highlight all the errors.
2. Start clearing your bills and loans in shortest possible time. To do this, you need to go through all your monthly credit payment dates, dates of your car loan, home loans, etc. You can mark the dates on the calendar and make sure you do your best to make the payment before the due date. This will eventually help in increasing your credit rating.
3. If your credit history shows lots of negative points then you need to make efforts to make it appear positive. A very easy to boost your credit score is to contact the services of which you have been making payments in timely manner such as internet service, retail card, etc. You can request such services to add your payment record to the credit bureaus.
4. Try not to miss any payment dates. If it happens, they may report it to the collection agency which will in turn affect your credit score negatively. When you owe some amount of money to an entity, before they inform the collection agency, you need to contact and let them when you will clear the payment.
5. Cut down on your usage of credit cards and if possible completely stop its usage until your credit score resurrects. Do not close down your accounts but make complete efforts to clear all payments and start working on improving your name.