Four Simple Ways You Can Improve Your Personal Credit Score

Personal credit score rating history has a great impact on the life of an individual, specifically if they are ever going to apply for a personal loan, mortgage or even small business loan. As no matter where you apply for any loan, they will go through your personal credit score history and will approve your loan on the basis of that if it will be in good shape. Here are four simple ways with the help of you can improve your personal credit score:

1.     Understand credit reporting:

Not every person is capable of understanding the details of credit reports and pin point their credit score, it’s better to take out some time to understand the process of determining the credit score on your own. It will help you to implement a proper strategy further to keep your credit score rating on track.

2.     Manage your payments:

The credit card payments should be made on time if you don’t want to ruin your credit score rating in the long-run. Paying 30 days late will affect your credit score rating for up to nine months and you will have to pay higher-interest rate because of making late payments, In the same way, if you will make your payments 60 days late it can affect your credit score up to three years, and if you make payments 90 days late it will affect your credit score rating to a dangerous level which is for up to seven years. Managing your payments will not only save your personal credit score rating, it will also save you from paying high-interest rates charged on late payments.

3.     Know how much you owe:

The utilization ratio of your credit cards are being monitored by the credit reporting agencies and these ratio of credit card utilization have major impacts on your credit score rating varying from positive to negative. For example: if you use your credit card up to 50% of its available limit it will have negative impact on your credit score, However, if you are using 30% or less than 30% on of its available limit it will have a positive impact you credit score rating but if you use more than 80% that is nearly maxing out the card it will have highly negative impact on your credit score.

4.     Keep your accounts open and use them:

Most of the time people rush towards closing their credit cards or accounts once the purpose behind opening those accounts has fulfilled but that is not suggested by experts especially when you have been very punctually making the re-payments of loan and credit card payments. As credit reporting agencies always go through your credit score history and if you have a good credit score rating history on a certain account or credit card do not shut it down once you’re done with it, keep it open and running by making minimal transactions to show the better credit score rating because everything counts.

Here is a link to help you out further. I hope it helps. Have a great day!

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