Top 5 Ways To Improve Credit Rating
Avoid Opening Unwanted New Credit Accounts
Too many accounts are a burden and cumbersome to manage. Nevertheless, they sap out your critical resources. Moreover, they reduce the average life of your credit accounts. Whatever weight age you had with your existing accounts will get dampened by opening new accounts, if you don’t use them.
Don’t close accounts in a hurry
Closing down additional accounts may help you in the short term. But prospective creditors will unnecessarily get alerted as they remain on the credit report. This sure will have a negative impact on your report.
Review your credit report regularly
You can order your free reports from all the three reporting agencies once a year. But the smarter way is to get them at spaces of four months each. This cost free way gets you reviewing the credit report regularly and helps to identify and remove errors from the reports. According to FICO this helps improve your credit rating by about 10%.
Meet a professional
Seeking professional help is advisable. But take care not to fall into trap laid out by scam masters who vanish as fast as they appeared. There are some non profit organizations which help you improve your credit rating.
Get Your Act Together; You are Not Alone
IF you are worried about how you can do all these things, it is not surprising. It is natural for anyone who is at the end of the road of his financial life. First of all, trace back the reasons that lead you to this situation. It can be one of the now more common of the reasons, like job loss, a marriage divorce or a personal accident etc. It is true that each one of these has a potential to set you back financially by years. But don’t panic now. The fundamental truth in your quest to improve credit rating lies in your courage and meticulous planning and finally your perseverance to execute it.
Improving credit ratings is not all about formulating strategies. If you are thinking &I; can improve my credit rating”, think again. Following the steps to improve credit rating involves a huge amount of discipline and hard work. If you succeeded in your endeavor, you can teach others how to improve credit rating.