Many people do not know this but one of the factors in determining your credit score is how much credit you are actually using in relation to the amount of revolving credit you have. Your credit rating will be a lot better if the percentage is smaller.
You should try keep your credit to debt ratio at about 30% or lower. Obviously, the lower you can keep this percentage the better your credit rating will be. This information is provided by a credit senior consumer specialist. These specialists know exactly how to calculate the factors that are required for a good credit rating and therefore you should listen to everything that they recommend. Increasing Your Credit Score One of the ways that you can increase your credit score is to keep your balances low and if you have balances that are high, try to pay them down as quickly as possible. It should be noted that people pay their full balance every month will still maintain a higher utilization ratio. The reason for this is because there are certain credit companies that send the balance that is on your statement as your credit report to the credit bureau. One of the best ways to improve your credit score is to completely remove any nuisance balances. A nuisance balance is a small balance that you would have on a number of credit cards. For example, you may have a small balance on your various gas credit cards, furniture store credit cards, major credit cards, or any other number of credit cards. Outstanding Balances Credit card companies receiving a new application, look at how many of your cards have a balance outstanding. Therefore, you should utilize only one major credit card instead of a variety of smaller ones. Simply gather up all of the credit cards that you have small balances and pay them off. Then use one or two of your major credit cards to purchase everything else that you buy. There is a misconception out there that an older debt on your credit rating is a bad thing. The simply is not true. Therefore, when you finish paying off a particular loan do not try to remove the information from your credit history report. This old debt will show the credit bureau that you are responsible when paying off your debts. For some of the other misconceptions regarding personal credit scores, please take a moment to visit this recent Huffington Post article - http://www.huffingtonpost.com/2014/12/14/credit-score-myths-_n_6296012.html Managing Your Debts Sensibly It should also be noted that even though a negative report is bad for your credit score it will be removed after seven years. Leave those older good debts that you have managed well on your credit report as long as you can because it is better for your overall credit score. Also, simply try to avoid any negative reports on your credit rating. For additional hints and tips relating to avoiding negative reports on your credit rating, please check out 2 of my other sites by clicking on the links below:
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The financial Murphy's Law has a way of creeping on us at the worst times. We do not always see car repair bills, outrageous medical bills or other huge expenditures coming our way. Furthermore, many people are not flush with cash or savings to deal with these situations at a moments notice. Fortunately, or unfortunately, there exists some ways for people to get through these situations, and one of these is the ability to borrow cash on your credit card. But, is it a good idea?
The Good News The good news is that getting cash from your credit card is pretty easy. You can take it down to an ATM machine or bank and withdraw money just like you would from a bank. There is no long waiting period associated with other types of loans. You can have your money within minutes. The Bad News The downside, however, is that the interest rate on cash withdraws is usually higher than typical purchases. Repaying the amount is more difficult more of your payment is being eaten away by interest. If you are already in a tough financial situation, and making minimum payments, then it could take years to repay the money you took out. And, the money you spent on that withdraw could end up being enormous. The convenience you got from taking out a loan with no guarantor could be exactly what the credit card company wants. They offer you the promise of quick cash easily. But, they are enjoying their great profits at the expense of your financial hardship. However, the situation can still not be avoided at times. If you still do have to take out money on the credit card then consider these ways to get out from under it. Make Fast Repayments Pay off the amount as quick as possible. Any money that you get should be sent to them to reduce that principle so interest is not eating away at it. See if you can qualify for a balance transfer to another card. Many will offer 0% transfers. This will give you the ability to make lower payments, but more money goes to principle rather than interest. Sometimes borrowing money against the credit card cannot be avoided. But, be wary of doing it for unimportant things. Try to do it only if there are no other alternatives available to you. Otherwise, you could regret it for years to come. For more information relating to credit cards and how they work, please visit the following link - http://en.wikipedia.org/wiki/Credit_card In today's tough economic times, many people's credit scores are taking a plunge. While it is easy to get in debt and ruin your credit score, it is much, much harder to get yourself out of debt once the process has begun.
Below you will find three easy tips for improving your credit rating and getting back on top where you once were. Go Over Your Credit Report With A Fine Toothcomb The first thing you will want to do is go over your credit report with a fine toothcomb. You can get a credit report annually from all three of the major credit reporting agencies. Once you have those credit reports in your hand, you need to sit down and go over each and every thing on it very carefully. Look for any errors and inconsistencies and then make sure to report them to the proper credit agency right away. There are many identity thieves in the world today and you want to take serious steps to make sure that these types of people do not affect your credit. Reporting any errors and inconsistencies you find can help you to improve your credit rating quite a bit each year. Schedule Payment Reminders It is really easy in today's hustle and hurry world to forget that the Sears bill was due or forget that the credit card bill was due two days ago. Being constantly late on your payments will ruin your credit quickly. You should set up automatic payments through your credit card company and other bill collectors, so that payments are drawn out of your account automatically. If you aren't comfortable with this, then you should at least set up payment reminders to remind you when each bill is due. Reduce Your Debt Owed Reducing the amount of debt, such as any outstanding loan uk you owe can go a long way towards building your credit rating. You should come up with a list of the credit cards that you owe, including the payment, interest rate, and how much you owe. Try to consolidate them into one credit card, thereby increasing your credit rating. These are just three ways that you can improve your credit rating in today's uncertain economic times. Follow the tips above and it shouldn't be long until you have your credit rating back where it belongs. You should implement these tips as soon as possible, however, to keep your credit from getting any worse. For more information regarding how credit rating’s can affect your life, please check out the following sources of information:
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