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Posted: 03 Mar 2011 11:54 PM PST  If you didn’t know, your credit score influences your ability to get rid of debt and stay out of it. You will be charged the higher interest rate on money you borrow, that is, if your credit score is bad. But on the positive side if you have a good credit score, it will cost you less and enable you to pay it off quicker. So it’s important to know your credit scores from all credit rating bureaus and to raise your score as well. Raising your credit csore is easy if you know what to do, of course. Here are 7 steps to raise your credit score rapidly and keep it good. It’s not important from what you will start, following this plan will lead your score to desired achievement.Step 1: Check your credit report The main credit bureaus (such as Equifax, TransUnion and Experian) are required to put a free copy of every consumer’s credit report at their disposal once a year. This step is very important because you can find errors there. Generally, one of the four credit reports contain a mistake which can prevent you from getting a loan or credit card. So, once you get a report go through it carefully. And if you find out some errors such as late payments that were actually paid on time, correct them as soon as possible. Send a certified letter with the explanations what information was incorrect and include copies of documents that confirm your pretension. Step 2: Automatize payings on your bills This is probably the most important tip. Being late or missing payments can destroy your credit score quickly. So the usage of bank’s online bill-paying service is strongly recommended. With it’s help a pre-set sum will be automaticly transferred from your checking account every month and cover at least the minimum payments on all your credit accounts. Step 3: Avoid new credit card purchases One of the worst things you can do in a bad credit situation, is continue gathering debt by making purchases with a credit card. If you already have balances on your credit cards, give them up until you have more control of the situation. On the other hand, be cautious of letting an account remain inactive for several months – it may be canceled by the credit card issuer. Step 4: Length of Your Credit History The only thing that can improve your credit history is time, but you can manage it sensibly. Don’t open several new accounts in a short period of time, especially if your credit history is no longer than three years. Adding accounts too often tells that you might not be able to manage your credit responsibly. Step 5: Shop for loans quickly When you apply for a loan, the lender send out a request to one of the credit-rating agencies to find out how worth your credit is. A lot of such requests can hurt your FICO score, since it could indicate that you’re trying to borrow money from different sources. The FICO scoring system is designed to allow for this by considering the length of time over which requests are made. So, try to do all of your loan shopping within 30 days. Step 6: Consolidate your debts sensibly Consolidating your debts makes sense, particularly if you’re able to fulfill the consolidation at an interest rate saving you money in the short term and the long one. But don’t look at debt consolidation as the total solution of all your difficulties. If you really decided to consolidate your debts, get yourself some knowledge on financial management along with that, in order to become more responsible with your personal budgeting and spending. That’s the best mean for securing your financial future. Step 7: Demonstrate That Your Responsibility The best way to raise your credit score is to show that you can handle credit responsibly. It means not borrowing too much and paying back on time. Don’t open new accounts just to increase your available credit or create a better variety of credit. You should open new credit accounts when you really need them. As a conslusion, you should understood that raising your credit score isn’t a speedy process and can’t be done overnight. Instead, take into considerations all the aspects that can help improve your credit score and continue paying your debts – in time you will see your credit score improve. 7 Steps To Raise Your Credit Score is a post from: Moola Days |
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