So the credit score is now essential in obtaining loans as it says a lot about your financial status and payment history. Banks and loan providers rely on it in order to get assured of the debtor ability in paying back.
It’s settled. If you want to buy more commodities, better commodities, and loans with better conditions and low interest rates you need to increase your scoring.
A survey adapted by National Foundation for Credit Counseling found that people are more embarrassed about their credit scores, even more than their weights. The survey indicated that 30% don’t prefer admitting their real score, while only 12% are embarrassed about their weights.This means that more people are having financial problems, and more people need to increase credit score.
What to do?
According to Liz Weston, changes could start taking place after 30 to 60 days as long as you don’t have some serious labels on your report like bankruptcy or foreclosure.
First thing and the most important thing you need to jack it up by getting sufficient income that flows in your accounts on regular basis from any source either a job, business, etc. We keep saying this because it’s important, actually it’s like laying the foundation for better financial situation.
The second thing of course is paying all due debts, no place for delays or delinquencies as they have severe effect. Stacking up overdue bills and having the account go to a collections agency is dangerous and could stay in your report for seven years.
The third and the same important mean is getting approved for cards by any mean. Having one or two cards and paying their bills on time is way better than no cards at all, it gives a strong indication about your discipline and financial capabilities.
Just beware when you are having the plastic card in your pocket not to over use it and keep all expenses within limits, this is very important because more expenses means heavier burden, bigger debts, which make it more difficult to increase your creditworthiness
What if you are have a credit card or two, don’t close any of them, and just keep them at least for paying a recurrent payment. Closing a card will look bad and could hurt your scoring again, that’s why it better to keep them running.
Actually it’s not a big deal to refresh your creditworthiness, just keep expenses within boundaries, pay your debts, and get a good regular income. That’s all.