Having a good credit rating is essential for you to be able to get loans to make the major purchases in life; mortgages and cars are two of the biggest. The better your credit score the more likely it is that you will get a loan and also the more likely that the rate will be a favorable one. It is no secret that a lot of people have a less than desirable credit score, but this does not mean that people should simply give up hope because there are several ways to improve it. The best thing is that you are able to improve it quite quickly if you follow some very simple steps.
One of the first things you need to do is to get a copy of your credit report, you can do this by contacting a number of different agencies that offer this service. Once you have the report to hand it is time to start thinking about how you can make major in roads in to building your credit score. Here are some tried and tested ways that you should consider.
Sign up for a credit card
If you can get at least one or two credit cards then you will be able to start improving your credit score straight away. If you don’t overuse your card and pay your bills on time then it will benefit you no end. Some cards will even offer cash back on purchases; it’s a win win situation.
Don’t overuse your cards
I know that I just told you to get a couple of credit cards but it doesn’t mean that you should be maxing them out at all. The best thing to do is use it as little as possible, it’s best to use about 10% of your allowed credit. It looks bad for the credit agency if you are constantly spending near to your credit limit each month, even if you pay it all off it still does not look good for you.
Raise the credit limit
If you are getting close to your limit each month then it is time to ask your card issuer to increase the credit limit. You need to make sure that you can trust yourself because you don’t want to use your card incorrectly. Remember that the idea is to only use around 10% of your total limit – do this and you will see that credit score improve very quickly indeed!