05 October 2016

What is your credit score? You must know about it before applying for a loan to buy home or car! Your credit score does matters very imperatively. Higher your credit score is the lower interest you pay! This credit score is a 3 digit number that is generated from your credit report.

The credit score is taken into account including your past behaviour and present actions. If you wish to pay low-interest rates for your borrowed money for your home, then you need to boost up your credit score as high as you can!

This is certainly not easy, but you need to shape up your credit score into best numeric so that the lender would show you a green signal to lend money and charge the minimal rate!

There Are Few Steps Through Which You Can Boost Up Your Credit Score.

1 Check your credit report- Diagnosing the credit report is the first step that can help you. Credit problems are not created for the same issue. Late payment, collection, bankruptcy, and huge credit inquiries are few of the reasons that lower your credit score. Apart from all these, mistakes in credit reports can have a negative impact on your score. Under the FACT Act, you are liable to get free credit reports.

2 Rectified the credit mistakes or issues- Going through the credit report you may not get the credit score, but you can get the history of your credits. As soon as you spot them, you can get those fixed. You can get guided step by step on the process of file a claim. Your report itself contains instructions.

3 Make your payments on time- If you have any credits on payments then close it soon. Take it seriously to make your payments on time. Maintaining upward trajectory is imperative. Any missed payment would hit your credit score strongly.

4 Make your payments higher than the minimal limit- Paying the minimal limit on the revolving credit is not a good indicator for a higher credit score. You need to pay more amount than the bottom line. When anyone reviews your credit report, if the payment is higher than the minimum-only payments then you would get a good indication. You can save a good amount of money for the lower interest rates.

5 Pay of the debts, don’t move it- If you have any existing debts on your card then don’t move it for a new one. You are allowed to do so by the companies, but you are charged extra costs. Pay off your debts as fast as you can. Work hard!

6 Don’t close the paid-off accounts- Paying the balances on your card, is a good step but don’t close it, especially prior to applying for a loan.

7 Don’t make it expensive- Avoid big purchases on credit, like purchasing a car or a vacation!