Free Credit Report – 3 Ways to Improve Your Credit Score Using a Free Report Online

The majority of the population is not in a position to pay cash for
home and automobiles. Hence, when making a large purchase, most people
must take advantage of financing options. Financing, or obtaining credit,
makes it possible to comfortably afford a home, automobile, etc.
However, financing does come with limitations. If you have good credit, your
finance options are many. On the other hand, if your credit needs
improving, you may be unable to obtain good rates when choosing to finance
merchandise.

Advantages of Maintaining a Good Credit

Sadly, many consumers underestimate the importance of maintaining good
credit. Secondly, some people fail to regularly monitor their credit
reports and credit scores. Credit is very important. While it is feasible
to obtain financing with bad credit, you will likely receive higher
rates and undesirable loan terms.

Before applying for any type of credit, take time to review your
personal credit report online. This way, you are knowledgeable of your credit
standing. In addition, you can take steps to improve rating. Here are
three tips on how to improve credit rating and boost your credit score.

Pay Creditors on Time

Paying bills late is extremely damaging to your credit report. If a
creditor receives your payments one day past the due date, they have the
right to increase your interest rate. Moreover, other creditors may also
increase your credit card interest rates if you pay another account
late.

Making timely payments will add points to your credit score. The higher
your score, the better your credit. On the flip side, continually
paying bills late will be revealed on your report, and decrease your overall
credit score.

Reduce Debt to Income Ratio

Your online credit report will include all pertinent information,
including how much debt you owe. Having an excessive amount of debts will
also lower your credit score. Rule of thumb: the more available credit
you have, the better. This indicates self-control and the ability to use
credit wisely. On the other hand, if you have several maxed out credit
cards, future lenders may be less willing to grant you additional
credit.

Keep Old Credit Accounts Open

Many assume that closing old or paid accounts will increase their
credit score. However, this maneuver does the opposite. Again, available
credit is good for your credit score. If you pay off a credit card, and
close the account, the credit is no longer available. Instead, keep paid
off accounts opened. If you are determined to get rid of a few credit
cards, cancel newer or recently opened accounts.

Source by Carrie Reeder

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