Ways To Improve Your Credit History

Your credit rating actually affects your life a lot more than you realize. It determines the kind of car you drive, cell phone you use, and where you live and work. Even the businesses you patronize are determined by your credit rating. To be denied credit or have your credit card canceled can be devastating. Your credit does not have to be delinquent in order for this to happen. If your credit score drops below a certain number, your interest rates may skyrocket beyond your ability to pay the debt. Your credit score has such an impact on your everyday life that it is important to make every effort to improve your credit rating. Doing so will help ensure a brighter future.

In order to begin to improve your credit rating, you will first need a copy of your credit report. Contact a Credit Reporting Agency (CRA). The three largest CRAs in the United States are Equifax, Experian, and Trans Union. If you’ve been denied credit within the past 60 days you are entitled to a free copy of your credit report. You’re also entitled to a free copy if you feel you are a victim of identity theft or if you’re unemployed and are planning on looking for employment within the next 60 days. The customary fee for a credit report can cost up to $9.00.

There are also online sources that allow you to access parts of your report, if not all of it, at no cost. If anything on your credit report seems to be incorrect, you are entitled to question it. Write to the CRA that provided your report. Make sure that your letter is polite and professional. If it isn’t, you’ll just look like another person who is making an invalid claim and may not get the treatment you deserve.

If there are no errors on your credit report, it doesn’t mean that there’s nothing you can do to improve your credit rating. Vigilance regarding credit use will pay off with a good credit score. When you use credit cards, pay them off as soon as possible. Communicating with your credit card company is a good step to take when you find yourself in trouble. If your balance is out of control call the credit card company and asked for a lower interest rate. Sometimes a lower interest rate will make the monthly payment easier to make. Always pay more than the minimum amount due. Doing so will help improve your credit rating.

If you have credit cards or other credit accounts that you do not use cancel them. Each open account has a credit limit. All of these credit limits add up to give you a high debt ratio. When you apply for a loan, the lender will look at your debt ratio. If it looks too high for you to be able to pay off they will deny you a loan.

Look at your credit report and make sure that all of the accounts have been authorized by you. Check all credit card statements to make sure that you are the one who is made all of the purchases. Keeping up with your credit report will be rewarding when you decide that you’d like to make a major purchase.

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