In today's scenario where lot of purchases can be made on credit your credit score can influence your lifestyle to a great extent.
If you have good credit scores then you can get higher credit limits but if it is not favorable then you might get a lower credit limit or even no credit at all.
Therefore if you do not have good credit rating then you have to work on it to improve it.
You have to keep in mind that just as your credit scores did not lower in a day similarly it will take time to improve your credit score.
So you must have the patience and follow the tips mentioned below religiously.
The first thing that you must do is take a good look at your credit report.
You can easily request your credit report from the credit agencies.
There are three main credit agencies and you must collect your report from each one of them.
You can place your request online.
Once you have the credit report in your hand you must analyze your account.
Check the transaction entries made in the account are correct or not.
There are chances that sometimes the account may show erroneous entries like the late payment, charge offs, collection that are not yours.
These need to be reported to the concerned company and the account rectified.
Remember that any negative information in your credit report will eventually affect your credit score.
A regular check of your account will always keep you updated.
You can always dispute the older negative.
For example you have an unfair billing from your cable company that has been transferred to a collection agency which you are disputing for the last seven or eight years but to no avail.
You can continue your dispute the same way or you can dispute it with the credit bureau saying "Not mine".
The collection agency does not bother to verify any small and old amount when the credit bureau investigates.
Eventually it will be removed from your account.
Always minimize your debts.
The more you pay off your debts the more you score on your credibility.
The easier way of doing this is by starting off with the smallest debt amount first.
Paying off your monthly installments like your mortgage loan or car loan will not have that much affect on your credit score as paying off debts of your credit cards.
You can see a big jump on your score the moment your credit balance reaches 30% of your credit limit.
One more effective way of increasing your credit score is by minimizing the use of credit cards.
You can use smart cards instead in which the deductions will be made from your own account rather than your credit limit.
This way you can always keep a check on your expenses as well as minimize your credits too.
Proper management of your finance can always help your increasing your credit scores.
It is better to start with one account first rather than with all credit accounts at the same time.
This will only create confusion rather than solve your problem.
It is advisable to take the help of professionals who can easily show you the right way to work on your finance and help you improve your credit scores.
If you have good credit scores then you can get higher credit limits but if it is not favorable then you might get a lower credit limit or even no credit at all.
Therefore if you do not have good credit rating then you have to work on it to improve it.
You have to keep in mind that just as your credit scores did not lower in a day similarly it will take time to improve your credit score.
So you must have the patience and follow the tips mentioned below religiously.
The first thing that you must do is take a good look at your credit report.
You can easily request your credit report from the credit agencies.
There are three main credit agencies and you must collect your report from each one of them.
You can place your request online.
Once you have the credit report in your hand you must analyze your account.
Check the transaction entries made in the account are correct or not.
There are chances that sometimes the account may show erroneous entries like the late payment, charge offs, collection that are not yours.
These need to be reported to the concerned company and the account rectified.
Remember that any negative information in your credit report will eventually affect your credit score.
A regular check of your account will always keep you updated.
You can always dispute the older negative.
For example you have an unfair billing from your cable company that has been transferred to a collection agency which you are disputing for the last seven or eight years but to no avail.
You can continue your dispute the same way or you can dispute it with the credit bureau saying "Not mine".
The collection agency does not bother to verify any small and old amount when the credit bureau investigates.
Eventually it will be removed from your account.
Always minimize your debts.
The more you pay off your debts the more you score on your credibility.
The easier way of doing this is by starting off with the smallest debt amount first.
Paying off your monthly installments like your mortgage loan or car loan will not have that much affect on your credit score as paying off debts of your credit cards.
You can see a big jump on your score the moment your credit balance reaches 30% of your credit limit.
One more effective way of increasing your credit score is by minimizing the use of credit cards.
You can use smart cards instead in which the deductions will be made from your own account rather than your credit limit.
This way you can always keep a check on your expenses as well as minimize your credits too.
Proper management of your finance can always help your increasing your credit scores.
It is better to start with one account first rather than with all credit accounts at the same time.
This will only create confusion rather than solve your problem.
It is advisable to take the help of professionals who can easily show you the right way to work on your finance and help you improve your credit scores.