Credit Rating

Please use the following tips to improve your credit rating.

Check for incorrect entries - Check if there are any incorrect entries reported in your credit report. This is a mandatory action and should be done by pulling your credit report from all the three credit reporting agencies. Either you can do it once in a year or you can also do it in several months before you are looking for a loan.

Timely payments - Making timely payments is considered a very good practice for improving your credit ratings. This is counted more when you are applying for a loan because your prompt payments will put you in a much comfortable position. This point is emphasized because a late or missed payment just before applying for a loan lowers the credit score and has worse impact than a missed payment five years ago.

Bring credit balance to the minimum - One beneficial factor of improving your credit scores is to reduce the credit card balances as much as possible. The amount of money that you owe on some cards relative to your total credit limit affects your FICO scores. Credit scores are seen improving if the balances are kept below 25% of the credit card limit.

Don't linger your payments It is suggested not to increase the ratio by closing an account and transferring the remaining balance to another account since the ratio of the credit card balance is linked to the credit limit. Doing this will lower the credit score which should not be generally done while you are on your way to increase your credit score.

Unused accounts to be kept active - While you are applying for a loan, it is suggested not to close any unused account. At the same time, it is suggested not to open a new account also during that time. It is said because if you are having a short credit history or less number of accounts, the credit score gets lowered when a new account is opened as there is no proven track record of it.

If you consider using some credit repair packages, you will be able to see results of credit report dispute actions within 45-60 days. These sorts of repairs require experience, persistence and patience as sometimes a lot of time is consumed while sending dispute mails. Also, the credit bureaus take 30 days for investigation.

Please do let us know your feedback. We will appreciate your comments and suggestions for the community welfare.

Regards
Roxette