7 Ways to Improve Your Credit Rating ...

There are several ways to improve your credit rating if it's not as high as it could be. You need a good credit rating if you want to apply for a mortgage or loan, so before you make any applications it's wise to take steps to ensure that your rating is as good as possible. Here are some ways to improve your credit rating …

1. Check Your Credit Report

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One of the ways to improve your credit rating is to check your credit report. This isn't expensive, and will show you if there are any problems that are affecting your rating. You may have incorrect information on your record that you are not aware of; once you know about it you can apply to have the information removed or corrected.

2. Pay Bills Promptly

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Do you think that it doesn't matter if you pay your bills just a few days late? Paying a little late may not result in having your power or water cut off, but it could give lenders the impression that you're not responsible with financial matters. Make sure that you always pay your bills on time. Do this consistently and you will appear a better prospect for credit.

3. Don't Apply Too Often

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You might think that it's better to apply for credit in lots of different places so that you increase the chances of being accepted. Wrong - it will actually have the opposite effect. If you make a lot of applications for credit, it suggests that you may have money problems and be desperately trying to get money from any source. This won't fill lenders with confidence.

4. Stay Put

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Your credit rating will also be hurt if you move around a lot, as people often do that to avoid creditors. Staying at the same address suggests financial stability, on the other hand. So try to establish a longer residence at the same address before applying for a mortgage or loan.

5. Credit Card

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Oddly enough, someone who has always paid off their credit card is actually considered a better prospect for further credit than someone who has never borrowed. This is because the former has shown that they can manage their card responsibly, whereas the latter has no history to prove that. It will look especially positive if you pay off the balance in full rather than just the minimum payments each month.

6. Don't Max out Cards

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Just because you have a maximum limit on your cards does not mean that you have to use every last cent available to you. Try to keep your balance well below the maximum. This shows that you are responsible, whereas maxing out your cards suggests that you can't handle money or budget sensibly.

7. Time

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Finally, be patient. It takes time to build up a good credit rating. Don't despair if you have had a poor rating in the past. These problems will eventually be less significant. The key is to show that you have overcome them and to demonstrate a new, responsible attitude by being a prompt payer over a long period.

There aren't any quick fixes to boosting your credit rating, so be prepared to prove yourself over time. Of course, the best option is to avoid getting into financial problems in the first place! What are you like with credit cards?

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