Know where you stand. Have you checked your personal credit report? If you have not yet requested your free credit report for this year, you can go to www.annualcreditreport.com to order. You can order all your three reports from the three major credit bureaus at once so you can be sure that all versions of your report contain accurate information.
Checking your report will
to achieve a high score.
What’s most important is how you pay off your credit card balance. It’s best to pay off your full balance each month so you don’t incur interest rate fees. Use your credit card for a small purchase so that repayment need not be a burden.
Avoid hard inquiries. If you need to acquire a new credit card or a loan, do not submit multiple applications to different lenders at once. Doing so will only damage your credit score even more. What you want to do is spend time comparing your options and once you have the right lender, that’s the time you can submit an application. Don’t forget to check the lender’s credit requirement to avoid unnecessary rejections as this will also pull down your score.
Keep credit usage minimal. You want to use your credit regularly but you should keep it as minimal as possible. In fact, you should not use more than 30% of your available credit if you want to see an improvement in your rating.
Apply for a small loan. Aside from revolving credit, adding other types of debt to your name is a great way to improve your credit score. An installment loan whether a personal loan, student loan or a car loan gives you the chance to prove your creditworthiness through timely submission of your monthly payments.
Acquire a small loan with just the right period of repayment. Choose a lender that offers a reasonable deal. Furthermore, make sure that the loan provider reports to the three major credit bureaus. As you submit your monthly loan payments, you will strengthen your credit history and add points to your score.
source: creditcreators.com
