Tips to improve credit score

Keeping the credit score in good standing is very important in applying for a loan. If you have a good credit score, the lender will not have second thoughts of getting your mortgage loan approved. Another perk of earning a good credit score is having better terms. Your mortgage will also be much cheaper and you will also have low interest rates.

In case you have a bad credit score, here are some tips i gather on how you can improve or increase your credit score.

First secure a copy of your credit report, check if all the information is accurate. If there is wrong information in the report, you should take note of them. Dispute them so the wrong information will be corrected. Even if you are not going to apply for a loan, you should still see to it that you check your credit report from time to time so you can repair any credit issues ahead of time.

Make payments on time to avoid inconvenience. You should avoid late payments towards any loan or skip payments altogether. If you are having financial difficulties, inform the lender about it so he will be able to make some necessary adjustments for you.

A way to improve credit score fast is to create a goodwill with the lender. You can do that by making timely payments consistently for a year. After that, you can give the credit card issuer a written request to erase some late payments that you might have made before. If the lender agrees to do "goodwill adjustment", it will definitely improve your credit score.

Make 'minimum payments due. In the case of credit card debt, at least make the minimum payments due on time. Do not acquire a new debt if you think you are unable to pay them on time. This will affect your credit score even more.

Lower your credit card balances, having too high of a credit card balance can be damaging to your score. Avoid this damage by keeping your balances below 20% of their limits. This can increase your score immediately.

Avoid overspending. Know your priorities and make sure you stick to them. Keep track of your earnings so you will know whether you are overspending or not. You can also increase your credit score if you know how to manage your finances.

That’s it, hope these tips helps to improve your credit score. :)

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