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10 Ways of Improving Your Credit Score

Your credit score is solely determined by your credit reports. In turn your credit score determines your ability to get credit or even procure a loan. A low credit score could mean not being approved for loans and mortgages or even higher interest rates where approval is secured. So it is important to keep a good credit score and here are a few ways you could improve your credit score.

1. First and perhaps the most obvious is to pay your bills on time. There is nothing more damaging in credit reports than a habit of late bill payments. However, paying your bills on time is equally beneficial to your credit score.
2. It is important that you keep your credit balance on a minimum. These means that you should demonstrate you are actually reducing balances while at the same time paying off your bills.
3. Only apply for credit when you really need it. Keep yourself as credit free as possible. However, if you need to purchase something on credit make sure you get the best rates possible to make repayment easier and timelier.
4. It is important to go through your credit reports and correct any misleading information. Sometimes the bureaus get the information wrong and it may reflect mistakenly on your credit report. It is important that you notify them of any mistakes for correction.
5. Try to negotiate with your creditors whenever the situation demands it. This is a much better option than defaulting or delaying payment on your bills. Creditors are not that bad and there is always the possibility they could listen and suggest an alternative arrangement.
6. Simply save. Keep a savings account with a tidy balance. This will give an indication of your financial stability which is only good for your credit score.
7. It is important that you never close any dormant accounts you might have with a good credit history. The credit report still puts them into consideration so your not using the account at the moment is not a very good reason to close it. It could come useful.
8. Avoid filing for bankruptcy at any one given time. If you are over your head in debt it is a better option to seek out debt settlement than filing for bankruptcy. Filing for bankruptcy will very seriously dent your credit score.
9. You could tap in on someone’s good credit record. If you could open a joint account with someone with a good credit score, you could really improve your own score. Also getting your loans cosigned by someone with a good credit rating will do you no harm at all.
10. Always strive towards reducing whatever debts you might have. This will improve your debt to income ratio which is important for your credit report and consequently your credit score.