Ways to Improve Your Credit Rating ?
I would love to hear suggestions for ways that I can improve my credit rating. I'm also mainly posting this so that everyone has a place to go to get ideas. :)
Here's one thanks to monty :)
Quote:
Originally Posted by montythegeek
If you want to build your credit rating there are cheaper ways. Like putting your groceries on the card and paying it almost all off each month with the balance in the bank the day the bill arrives.
What about a personal loan from a bank or non bank financial institution for things such as a car, travel or whatever reason that you pay off regularly (not early) ? Will this improve one's credit rating ?
Re: Ways to Improve Your Credit Rating ?
I built my credit so quick through buying a car. If you get a 5yr loan to pay it off, pay it off in 2years. Do not pay it off too soon. That just makes it look like you only have the cash on you at all times. What they look for is the cash and responsibility. Instead of your credit score of being 500. It will go up to 750+ with in 2 years instead of 5-8years. Just never be late with any of you credit card payment. ect. And you'll be all set. within 2-3yrs, youll be able to purchase a house without having to show any income. If you have great credit, you can get anything...pretty much. : )
Re: Ways to Improve Your Credit Rating ?
I have a credit card balance. Does it affect my score?
Re: Ways to Improve Your Credit Rating ?
yes, it affects your score negatively if you carry a balance that is 50% higher (I think) than your limit.
I'm curious though if it affects your score more positively to carry a low balance or no balance.
I just found a neat credit score estimator:
Re: Ways to Improve Your Credit Rating ?
MAINTAINING CREDIT-WORTHINESS (From Baycorp Advantage)
The following steps are recommended:
- Pay your bills on time
- Call your credit provider(s) in a timely manner and alert them if there is a problem meeting your commitments
- Review your credit file to make sure there are no errors in the information and/or discover any overdue accounts that have been forgotten about. A File Update Form is available to request corrections
- Monitor your credit file to ensure someone is not fraudulently using your identity (a growing problem worldwide)
- A “no” to a credit application, or the supply of goods and services where payment is deferred, does not necessarily mean your credit file is flawed. Credit providers each have their own lending criteria, so seek an explanation
- Remember that the details on overdue accounts, even when paid, remain on your file for five years from the date of listing, as part of your credit history
- An overdue account is usually a debt of over $100 that has been owing for a minimum of 60 days
- Overdue accounts where the debtor has been “confirmed missing” remain on the database for seven years.
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Timing your application can have a large impact
Almost all credit rating systems are sensitive to the time that you have been in your home and job. You will almost certainly get a much better Credit Rating if you apply for credit BEFORE you leave one job to start another, or BEFORE you move house.
Timing is everything!
Anniversary's can have a big impact on your Credit Rating
Most Credit Rating systems are very sensitive to anniversary's. For example:
It is always better to be just over one year than just under one year in a job .
If you are coming up to an anniversary at either your job or at your home, then it may be better to delay your Credit Application until just AFTER an anniversary has occurred. This can help you get a better Credit Rating.