Thursday, November 10, 2016

The 5 Step Plan Towards Improving Your Credit

improving credit
Your credit rating has a significant impact on your financial life in general. Credit rating is referred to on many different occasions. Whenever it is, you want to be confident that the agency checking will be happy with what they see. If you are currently not doing so well on this front, don’t worry. There are plenty of ways of increasing your credit which you can take on board. In this article, we are going to look at five steps towards improving your credit score. This should, with any luck, make borrowing easier in the future. It will also help with things like securing a mortgage on a house and even buying a car.

Check Your Credit

First things first, you need to actually check your credit. This might sound basic, but you need to be absolutely certain. Only then can you know what you are dealing with. Also, bear in mind that there are multiple agencies you can go through for this. They are likely to differ in their scoring, even if only slightly. So it is clearly well worth looking around at the different agencies to get a sense of your average score. Knowing what you are working with is the essential first step.

Borrow Sensibly

Improving your credit does not mean that you can’t borrow money at all - far from it. It just means that you need to be more careful about the kind of borrowing you do, and how much of it you do. As long as you borrow sensibly, your rating should not be affected too deeply. There are also options for borrowing for those who already have bad credit. It might be worth looking into these. A short term loan from Magical Credit could help you through a rough patch.

Get On The Electoral Roll

There are many things that are considered when your credit rating is being calculated. One easy way to instantly improve your credit rating is to get on the electoral roll, if you are not already. This works because potential lenders check this to see whether you are who you say you are. It will also probably help your case if you have stayed in one address for a long amount of time. Similarly, staying with the same bank for a long time might improve your score slightly.

Close Unused Credit Cards

If you have paid off your credit cards, that’s great. However, you also want to ensure that you close any that you are no longer using. Lenders often consider the amount of credit you have access to, as well as how much you owe or is outstanding. So closing your unused accounts will look favourably upon you.

Don’t Miss Payments

If you have any payments for any bills or similar, make sure you pay them on time. Missing payments is the quickest way to develop a poor credit rating. As long as you repay what you borrow on time, this should not negatively affect your credit rating.

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